Crude Oil Price Forecast – Crude Oil Continues to Grind a Bit Lower

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WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market pulled back just a bit during the early hours of Wednesday, as we continue to test the same support level that we’ve been chopping at for a couple of weeks. And in time, the market is paying close attention to support and perhaps even the $77 level.

While I don’t necessarily think that that means we bounce quickly, I suspect that the longer we hang around in this area, it’s likely that we continue to see, with a bit of effort here, some of the excess selling pressure abate, and see whether or not we can have some type of value enter the market where people are willing to get involved. The market is likely to continue to pay close attention to the 200 day EMA above which breaking that, of course, paying attention to the $80 level as it is psychologically important.

Brent Crude Oil Technical Analysis

If we do break down to the $75 level, it should be significant support in the Brent market. It’s very much the same scenario. And as we’re hanging around the 80% Fibonacci retracement level, which of course attracts a lot of technical traders. So, with that being said, I like the idea of taking advantage of any momentum going to the upside, but I wouldn’t get too big in this market.

There are a lot of questions out there. It seems like despite inflation, people are ignoring a lot of the geopolitical concerns that can be found in the oil market as well. So, I suspect at this point in time, any surprise is probably more to the upside than down. But we’re just grinding away. And what I want to see is some type of momentum to follow. In order to jump into the market again. At this point, I am simply waiting, and throwing a few small positions into the market as “trial balloons” from time to time.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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