WTI Crude Oil Forecast: Anxiously Awaits OPEC

We have seen a lot of strength, so taking a bit of a breather makes sense.

The West Texas Intermediate Crude Oil market went back and forth on Tuesday which should not be a huge surprise due to the fact that we have seen quite a bit of volatility over the last couple of days, and we have struggled to continue going higher after a huge move to the upside. That being said, I do not think that the market is going to pull back significantly, but we also have to keep in mind that there is an OPEC meeting during the trading session on Wednesday that a lot of people will be waiting on.

Underneath, the $85 level underneath should be a major support level, and unless OPEC decides to flood the markets with massive amounts of crude. That seems to be very unlikely, but they could raise the amount that they are trying to pump out. Nonetheless, as we go through the “reopening trade”, a lot of traders out there will be looking at the demand picking up, and prices should continue to go higher. That being said, there is a little bit of an influence from the US dollar, so if it starts to strengthen that could slow things down, but I do not think that we are going to see a major breakdown.

On the other hand, if we break above the top of the candlestick for the trading session, we will have made a fresh high, opening up the market towards the $90 level. If we can break above the $90 level, it is likely that we could go much higher, perhaps opening up the possibility of more of a “buy-and-hold” type of situation. I do not expect that to be easy, but it does look as if we are going to continue to see buyers. Even if we break down below the $85 level, the 50 day EMA is reaching towards the $80 level, so I think that is your “bottom to the market.” I do not see us breaking down below that region anytime soon, so is very likely that we will continue to see plenty of buyers every time we dip in order to find a bit of value. We have seen a lot of strength, so taking a bit of a breather makes sense.