Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Crude Oil Forecast: Continues to See Support Underneath

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.

Upside Breakout Looms. WTI eyes $80 mark, Brent near 200-day EMA. Market bullish, awaiting central bank moves and supply concerns.

  • The crude oil markets on Tuesday followed the same pattern that has been evident for a few weeks now; it appears that pressure and inertia are building up for an eventual upside breakout.
  • It certainly makes a lot of sense that could be the case given the limited supply. This is the big underlying issue at this point in time.

WTI Crude

Crude Oil Forecast Today- 28/02: Support Builds for Breakout (Graph)

As you can see, the early morning volatility in the crude oil market is a result of our ongoing efforts to determine the longer-term direction of the market. That being said, I do believe that we will continue to monitor the $80 level in this case involving the WTI grade of crude oil.

A significant amount of upward momentum will be initiated if we can break above the $80 mark. If everything else is equal, you could argue that this is a little complicated inverted head and shoulders, which is also a bullish indication. Meanwhile, I believe that buyers may enter the market in the event of a slight down to the 50-day moving average, motivated by the notion of value-hunting.

I'm not interested in shorting oil, but I am aware that there might be some work ahead of us. Brent finds himself in a similar predicament. We are threatening to rise further higher, now sitting just below the 200-day EMA.

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

Brent

Brent Oil Forecast Today- 28/02: Support Builds for Breakout (Graph)

Like WTI, Brent will keep viewing the world through the lens of whether or not central bank easing occurs and, if it does, whether or not it will increase demand for crude oil. I acknowledge that there are many worries about the global economic outlook, but I also believe that a lot of people are relying on it at this point. Due to the fact that supplies is beginning to become more scarce in the physical market, there are worries in the Middle East.

All of that being said, I do believe that there is a significant amount of upward momentum just waiting to happen, but you need to exercise some caution because we are now building up a small amount of inertia before making our next move. Nonetheless, it is difficult to sell – so I think we have a bullish market that is plotting its next move.

Ready to trade our WTI Crude Oil Forex? We’ve made a list of the best Forex Oil trading platforms worth trading with. 

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.
 

Most Visited Forex Broker Reviews