Crude Oil Price Forecast – Crude Oil Continues to See Support

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WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market bounced a bit from lows during the trading session on Monday as we continue to try to break above the $85 level. By doing so, it opens up the possibility of a move to the $87.50 level, which is the top of the current consolidation phase. This weekend, of course, had a lot of traders out there worried about oil markets due to the fact that the Middle Eastern War could have expanded quite drastically.

However, I think at this point, there are still a lot of reasons to believe that we will go higher over the longer term. So, either way, I’m a buyer of dips at this point, as if for no other reason than this time of year typically means that there is more crude oil demand. And of course, it looks like we’re forming some type of bullish flag.

Brent Crude Oil Technical Analysis

The Brent market initially turned around to show signs of negativity, but as we work our way into the session, it looks like the $90 level above is going to be a bit of a target. If we can break above the $90 level, then the $92 level above is a potential target.

If we break down from here, I still think there are plenty of buyers underneath and both grades of oil have the 50 day EMA just above the previous major support level. So, all of that being said, this remains a buy on the dip market in both WTI and Brent markets. And I do think eventually we break out to the upside and go much higher. With that being said, I remain bullish. I have no interest in shorting oil. And I do think this ends up being one of the better markets to hold on to longer term.

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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