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Crude Oil Forecast: Crude Oil Continues to See Bullish Pressure

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

WTI eyes $82.50, $88 levels with 200-day EMA support. Brent bullish towards $90, $80 as floor. Seasonal travel boosts demand.

  • As you can see, the WTI grade of crude oil has slightly declined before rising again and exhibiting life.
  • That being said, the 200-day EMA is undoubtedly a signal to which many will be closely watching, and it appears that it is attempting to provide some support.
  • When the market even slightly declines, purchasers are still drawn to this market because of its value.

I think the WTI grade, and the crude oil market might reach $82.50 and perhaps $88 if we can break beyond the $80 line. The 50-day EMA is included here as well, and it has the potential to provide a lot of support. Given that this is a frequently monitored technical signal, it is logical to focus on this particular region. This is an area I will be paying close attention to obviously, as it is so significant.

Crude Oil Forecast Today - 21/02: Bullish Trend in Crude Oil (Graph)

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Brent

Breant Oil Forecast Today - 21/02: Bullish Trend in Crude Oil (Graph)

At this time, Brent remains quite bullish, with resistance coming from the $84 level above and support from the 200-day EMA. I believe it's likely that we will reach the $90 level if we can pass that level. What I believe to be your short-term floor is the $80 level, where the 50-day EMA beneath is still providing support. Both of these, in my opinion, are going to develop rounded bottoms and turn upward. With summer quickly approaching and more people traveling, driving, flying, and other activities associated with it, crude oil is now benefiting from seasonality. Therefore, crude oil usually does okay at this time of year.

Having said that, all signs point to increased prices. And in a market where supply is beginning to taper off, I believe that temporary declines nevertheless present purchasing opportunities. That naturally enters the picture now. Additionally, I believe that traders are attempting to take notice of the possibility that rate cuts by central banks worldwide could boost economic activity. If that’s the case, we probably see most commodities take off, with oil being the biggest one typically. This market is a great indicator of how the global economy is doing but is obviously noisy to say the least. I am bullish, but I also see there is work to do.

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Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

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