Crude Oil Price Forecast – Continues to Rally Into Resistance

WTI Crude Oil

The WTI Crude Oil market rallied a bit during the trading session on Tuesday to reach above the 50 day EMA. In fact, we have broken above the $40 level and it is likely that we will see sellers come in and try to push this market back down. After all, the crude oil market is rallying on complete nonsense currently, based upon hopes of a stimulus package which even if it does enter the picture, stimulus has not worked to cause inflation, something that crude oil needs to help it move along. With that being the case, I think that the market is probably going to continue to see issues, especially near the 200 day EMA which is just above. At first signs of exhaustion I would be more than willing to short this market again.

Crude Oil Video 07.10.20

Brent

Brent markets rallied into the 50 day EMA rather early during the trading session as well, and it now looks as if we are going to try to push even higher. Having said that, there is a significant amount of resistance just above, extending from the 50 day EMA to the 200 day EMA which sits just above the $45 level. Signs of exhaustion will be opportunities to short this market as well, and you should also pay attention to the US dollar in general. If the US dollar strengthens it should weigh upon crude oil in general. I have no interest in buying crude oil anytime soon, and I do think that we have gotten a bit ahead of ourselves in the short term. With all of that, I need to see exhaustion on a short-term chart, and of course US dollar strength to back up the trade.

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