Crude oil Forecast: Oil continues to build upward pressure

• Crude oil markets dipped slightly during Monday’s trading session, then it re-addressed to the upside once again.
• All things considered; this market has been in a base-building phase for some time.
• Because of this, I remain slightly bullish, but would not get over exposed to the sector at the moment. I believe that will probably be the main story with crude oil for most of the year.

WTI Crude Oil

The West Texas Intermediate crude oil market initially tumbled on Monday but turned around and showed some signs of life. In other words, I believe that the oil price will continue to rise until there is an attempt to surpass the resistance of $75 per barrel. If we manage to break above $75 level, we would probably aim at reaching 200-day EMA. The area under this level is backed up by dozens of $71 supports and I do not think we have any intention of going below that mark immediately. If we reach $68 afterwards, it can only become our floor. As a result, breaking down it is very bearish. Nevertheless, I think that here we have been gradually forming a base and eventually oil means a rebound. However, caution is something that you will have to embrace.

Brent

Brent is something similar – but we initially retreated from it before bouncing back showing Signs of Life maybe Testing Overhead Resistance at the 50-day EMA Upward. Should we go further than this line? After that point $80.50 could be seen as the next near term resistance level you have to challenge first. So, if the market manages to break above there; then we just might get an opportunity to run towards 200 day EMA. It’s an interesting signal, isn’t it?

However, in my opinion oil is one asset where you still buy every dip and soon after that prices will explode upwardly out of nowhere sometime in future. However, currently we are sluggish. Consequently, look upon all these falls as short term buying chances anytime, they happen; however, make sure you quickly sell since you are looking forward for profits then do exactly what has been stated above over and over again during each single case or else. Most of the time this would be true, so every time you glance at crude oil markets, do not forget this.