Crude Oil Price Forecast – Crude Oil Rallies After NFP

WTI/CL Technical Analysis

The crude oil market has rallied during the Friday session after the jobs number came out better than anticipated in America. So that, of course, suggests there might be more demand. All things being equal, this is a market that, given enough time, probably has to make a bigger decision. And if we can break above the $65 level, it opens up the possibility of a move to the 200 day EMA.

Ultimately, this is a market that given enough time probably has to decide whether or not this is a basing pattern. We have recently made a double bottom at $55 and since then we’ve seen the $60 level offer a bit of significant support. So, with that being said, I like the idea of buying dips and a breakout here in the light sweet crude oil market.

Brent Technical Analysis

The Brent market, of course, looks very much the same as we are hanging around the 50 day EMA. And if we can break above there, then we could go looking to the $68 level. The $68 level, of course, is an area that has been massive resistance. So, if we can break above there, then the market could go looking to the 200 day EMA.

Short term pullbacks continue to be buying opportunities from what I can see. But I also recognize that there are a lot of questions right now being asked about the overall attitude and strength of the global economy, which has a direct influence on this market. I still favor the upside; I just think it’s going to take some time to finally break out.

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