Crude Oil Price Forecast – Crude Oil Markets Bounce From Major Uptrend LineCrude oil markets initially rallied during the trading session on Monday to kick off the week, as an Iraqi oil minister suggested that not only would OPEC continue its production cuts, but it would possibly even consider cutting an additional 400,000 barrels a day.
WTI Crude Oil
The West Texas Intermediate Crude Oil market initially tried to rally during the trading session on Monday, bouncing from the uptrend line and reaching towards and above the 50 day EMA initially. Having said that, we have pulled back a bit from there to show signs of exhaustion. Overall, I believe that the market is going to continue the overall uptrend and channel for the rest of the week, but it will more than likely be very choppy, and news driven. It is because of this that the $55 level underneath will offer plenty of support, but if it does in fact get broken, the market goes down towards the $52.50 level.
Crude Oil Video 03.12.19
Brent markets also bounced from a potential support level, closer towards the $60 level. At this point, we did pierce the 50 day EMA and if we break down below the $60 level underneath, the market probably reaches down towards the $57.50 level. Otherwise, if we were to break above the top of the candlestick for the trading session on Monday, we are likely to go looking towards the 200 day EMA. All things being equal I think that the market is likely to continue to go back and forth and chop around, so with that being the case I do like the idea of simply sitting on the sidelines as we are basically in the middle of the larger consolidation area. With this week having a major OPEC meeting, expect a lot of noise.