WTI Crude Oil Forecast: Crude Oil Continues to Power Ahead

Christopher Lewis

Buying on the dips is about the only thing you can do.

The West Texas Intermediate Crude Oil market has rallied significantly during the course of the trading session on Monday to kick off yet another bullish trading session. At this point, there are major concerns about supply when it comes to energy overall, and of course crude oil is no different. That being said, one thing to keep in the back of your mind is that US shale producers are finally ready to drill again, as prices have gotten so out of hand. That being said, it is not a fix that happens overnight, but certainly something to watch in the back of your mind.

From a technical analysis point of view, we have not made a fresh high yet, but we are certainly pressing the issue. We may have gotten just a little bit ahead of ourselves over the last couple of days, so I think a pullback makes a certain amount of sense. That pullback will certainly attract a lot of attention going forward, because it is obvious that we are in a bullish run, and it is also obvious that the market has further to go. Looking at the chart, the 50 day EMA sits just above the $70 level, which of course has its own important, due to the fact that it is a large, round, psychologically significant figure.

I think there will be plenty of people willing to pick up value on the dips, and I simply do not have a scenario in which I would be willing to sell energy, let alone this chart. To the upside, if we can break out above the $77.50 level, then it is likely that oil goes looking towards $80 a barrel. The $80 a barrel level is my target right now, but quite frankly the way we have been going, it should not be a huge surprise if we go above there. This continues to favor a lot of bullish attitude due to the fact that we have the seen supply disruption become a major issue. The reopening of the world’s economy after shutting it down and up having a rather negative effect on multiple markets, at least as far as the supply of them. Who knew? Nonetheless, buying on the dips is about the only thing you can do. We have had four very strong days in a row, so we are due for that pullback.

WTI Crude Oil

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

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