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Crude Oil Price Forecast – crude oil continues to grind sideways

By:
Christopher Lewis
Updated: Jan 16, 2019, 18:37 UTC

Crude oil markets went back and forth on Wednesday, as we await inventory figures later this week that should give us a little bit more in the way of direction. We did have numbers on Wednesday that suggested that we continue to use crude oil at large numbers in the United States, but they weren’t enough to push higher.

Crude Oil daily chart, January 17, 2019

WTI Crude Oil

The WTI Crude Oil market went back and forth during trading on Wednesday, as we are currently trading between the 20 day EMA and the 50 day EMA. There is significant support at the $50 level as well, and therefore it makes sense that we should see buyers on the dips. We have broken above a downtrend line, and now I believe we are trying to build up the necessary momentum to continue going higher. On a daily close above the 50 day EMA, I think that’s a buying opportunity for a larger move, perhaps reaching towards the $57.50 level.

Crude Oil Price Forecast Video 17.01.19

Brent

Brent didn’t do much during the day, as we continue to hover around the $60 level. The 50 day EMA is just above, so we can break that level, pictured in red on the chart, then I think we can continue to go towards the $65 level, perhaps even the $62.50 level. Ultimately, the 20 day EMA is just below pictured in green, and it is starting to slant upward. I think we are getting ready to see a break out in oil, but right now we don’t seem to have the momentum. As soon as we get a daily close above that read EMA, I’m going to start buying. If we break down below the 20 day EMA, it’s very likely that we will go looking for support closer to the $55 handle.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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