WTI Crude Oil Forecast: Market Plunges Only to Find Buyers

If we can time this just right, then it is likely that we could see a lot of technical traders come back into the market.

The West Texas Intermediate Crude Oil market fell rather hard during the Friday session, reaching down towards the $83 level. At that point, buyers stepped in and took advantage of value, and as a result, it looks like we are ready to go higher over the longer term. The previous candlestick on Thursday ended up being a shooting star, so the fact that we have turned around to press the issue and form a bit of a hammer does suggest that perhaps we are likely to continue seeing a lot of back and forth and upward pressure. Quite frankly, if the market continues to see buyers on dips like this, we will eventually break out to the upside.

OPEC seems to be struggling to produce enough crude oil, and as a result it is very likely that we will continue to see a lot of upward pressure due to that. If we can take out the top of the Thursday candlestick, I think that will bring even more buyers back into the market and it is likely that we could go looking towards the $90 level. The market is closing out the week near the $85 level, so that is something worth paying attention to as well, as it was previously resistance.

On the other hand, if we were to break down below the bottom of the candlestick for the Friday session, then I think it just signals that we are about to see even more value enter this market. I would be especially interested near the $80 level, because not only is it a large, round, psychologically significant figure, but it is also an area that mattered previously. The 50 day EMA is starting to reach towards that area as well, so if we can time this just right, then it is likely that we could see a lot of technical traders come back into the market. Nonetheless, crude oil may not even get that far, and I think it is likely that we will continue to see buyers. Ultimately, this is a market that should go much higher given enough time, especially as it has been so impulsive. Pullbacks will continue to be looked at through the prism of value, and I have absolutely no interest whatsoever in shorting this market.

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.