WTI Crude Oil Forecast: Continues to Build Consolidation Area

Currently, I look forward to WTI Crude moving towards the $100 level as a potential target. West Texas Intermediate Crude Oil The crude oil market initially drifted slightly lower in Thursday’s trading session, but turned around and showed signs of life as the US dollar broke. This was due to a 0. % increase in the US consumer price index for the month instead of the expected 0.6%. The idea is that the Fed may slow down or even reverse faster than people thought, so that could depress the overall value of the dollar. Since oil is priced in US dollars, everything correlates pretty well. Advertisement See Why Oil Is One Of The Most Popular Commodities TRADE OIL NOW The market sees a break below the $85 level as real support, we should probably continue to think this could build some consolidation territory. True, we formed a bit of a „double top” at the 200-day EMA, but that doesn’t necessarily mean we’re down forever. It just tells me that the 200 day EMA is respected, at least for now. If we can break through that, that would obviously be a signal that you need to pay attention to. Currently, I look forward to WTI Crude moving towards the $100 level as a potential target. On the other hand, if we were to break below the $85 level, it is possible that we could fall to the $80 level. Demand Issues Ahead Right now I think it’s a market trying to figure out what the next big move is going to be. We might have some noise for the next couple of days, but ultimately I think you’re going to have a situation where we finally get out of that small area. Once we do that, we’ll have a little more clarity. One of the biggest problems you have with the oil market is that demand is a big problem because it’s slowing down most clearly in the world, but at the same time you have supply problems. So we continue to generate a lot of volatility in this market, so I think the most important thing you can do is keep your position reasonable, but it certainly seems like we’re trying to consolidate and build enough momentum for a bigger move.