Crude Oil Price Forecast – Crude Oil Markets Continue to Probe Resistance

Christopher Lewis
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WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market rallied during the trading session on Wednesday to pierce the top of the channel that we have been in for so long. By doing so, the market looks likely to eventually break out, but we do not have enough momentum quite yet. That being said, I believe that it is only a matter of time before we see buyers jump in and push above the crucial $120 level. This is where we sold off during the previous session, so I think a little bit of a pullback and a rally is likely to occur. I look at dips as potential buying opportunities and what has been an obviously bullish market.

Crude Oil Prices Forecast Video 06.06.22

Brent Crude Oil Technical Analysis

Brent markets have also rallied during the day, but much like the WTI grade, face significant headwinds. Pullbacks at this point should be well supported near the $115 level. Even if we break down below that level, I do not have any interest in shorting this market anytime soon, because I believe that the $112.50 level, the 50 Day EMA, and the uptrend line from the previous triangle all come into the picture to support the market. With China reopening, it certainly will have a major influence on demand for crude oil, and therefore we should see continued upward pressure.

Furthermore, it’s worth noting that it is typically a very busy time of the season for demand as well, so all things point to higher pricing. The $130 level is a very real possibility, but that does not necessarily mean that we are going to get there overnight. Pullbacks offer value.

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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