Crude Oil Price Forecast – Crude Oil Markets Pull Back After a Gap Higher
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market has initially gapped higher to kick off the trading week but has spent most of the day on Monday pulling back to fill that gap. Ultimately, this is a market that I think will find buyers underneath, especially near the $116 level. Crude oil markets have been extraordinarily bullish for quite some time, and it’s likely that will continue to be the case. Demand for crude oil was going to pick up as China reopened, and of course, there are a lot of concerns about inflation, which is typically seen in the energy markets first.
Crude Oil Prices Forecast Video 07.06.22
Brent Crude Oil Technical Analysis
The Brent market behaved much the same as the WTI market, as one would expect. It looks as if the $120 level is offering a little bit of resistance, but it is more likely than not going to be of the psychological variety than anything else. Both of these markets share the same characteristic, one of which is a “buy on the dip” scenario.
The 50 Day EMA sits at the $109 level and is rising, which is what I’m using to suggest where the “floor of the market is.” I don’t know if that’s actually the case, but it’s as good of a level as anywhere else. Certainly, you cannot be a seller in this market, and any pullback has to be thought of as a potential opportunity. The market has got a bit parabolic over the last couple of weeks, but in a somewhat orderly fashion. In other words, I do not think that we are quite overbought but we will get the usual back-and-forth volatility along the way.
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This article was originally posted on FX Empire
