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WTI Crude Oil Forecast: Crude Oil Ready to Break Out Again

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The buyers are becoming just a bit more aggressive as of late.

The West Texas Intermediate Crew Oil market rallied during the training session on Thursday to slam into the $115 level. As you can see on the chart attached, I have drawn a line at that area, and you could make an argument for some type of ascending triangle, or something similar to it at this point. I like the idea of buying dips, and I do think that every time this market pulls back there will be buyers willing to step in and try to take advantage of any type of value.

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The 50 Day EMA is sitting at the $105 level and is rising. Ultimately, I think that it offers dynamic support as you have seen multiple times in the past, but I would think of it more as a “spongy area” as it hasn’t acted like a trend line. In fact, you could even make an argument for an uptrend line underneath that level, and it coincides quite nicely with the $100 level. The $100 level is a large, round, psychologically significant figure, so I think that if you were to break the role of that, then you can start to have an argument to the downside. Nonetheless, this is a market that I think will remain bullish for the foreseeable future, but not quite as strong as in the past.

On a break above the $116 level would clear the market for a move to the $120 level, possibly even the $125 level. I think at this point in time, we will more likely than I see that happen, because of everything that’s going on with the crude oil supply around the world. We continue to see a lot of concerns when it comes to the Russian supply as well, even though they are selling crude oil to a handful of major importers, such as China and India.

Think of this as a market that you need to find value in, and I would also point out that the most recent dip was much shallower than the three previous dips before that. That suggests that we are starting to see a build in momentum, and I do think that is something that’s worth paying attention to. In other words, the buyers are becoming just a bit more aggressive as of late.

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