Crude Oil Price Forecast – Crude Oil Continues to See Bullish Pressure

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WTI Crude Oil Technical Analysis

The crude oil market pulled back slightly during the trading session on Monday, but still looks pretty bullish overall. The WTI crude oil market sees a significant resistance barrier in the form of $80, and it has been probed. At this point, I think it’s probably only a matter of time before we break out above there. When we do, it’s probably going to be very violent.

Short-term pullbacks should see the 200-day EMA underneath as potential support, and breaking down below there opens up the possibility of a move down to the 50-day EMA. But either way, I think both of those are going to be very difficult to break below. So, I think you have a continued buy-on-the-dip circumstance. That’s probably going to be the case for the foreseeable future in this market.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same, its barrier being the $84.50 level. The $84.50 level is an area that we have seen a lot of trouble in, but if we were to break above there, it frees the Brent market to go much higher. The 200-day EMA and the 50-day EMA both are sitting underneath end offer and support as well, but at this point in time, both crude oil grades that we follow look as if they are forming inverted head and shoulders, or maybe a rounded bottom pattern.

Keep in mind we are heading into the time of year when demand picks up and of course supply has been so tight recently. Furthermore, we have to keep in mind that there’s a lot of trouble in the Middle East that could continue to keep prices somewhat higher. With that being said and central banks around the world looking to cut rates, demand should pick up in the next few months and therefore I think you’re seeing the market start to price that in.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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