Crude Oil Price Forecast – crude oil markets bounced back on Wednesday

WTI Crude Oil

The WTI Crude Oil market rallied a bit during the trading session on Wednesday, showing signs of life again. However, there is a lot of noise above and I think it’s only a matter of time before the sellers come back. I believe that the $50 level above should offer resistance as it was support, and of course the 50 day EMA is turned firmly down. I think a rally is probably a bit overdue, so the next couple of days could be positive, but quite frankly it’s not until we clear $55 that significant bullish technicals come back into play. In the short term, I think you can fade rallies that show signs of exhaustion.

Oil Forecast Video 27.12.18

Brent

Brent markets tested the $50 level, showing signs of life during the day as well. However, I believe that just as in the WTI Crude Oil market, there is massive resistance above, in this situation it can be found at the $60 handle. We would need to clear that area rather significantly for me to feel comfortable going long, and the meantime I think that the rallies will end up being selling opportunities at the first signs of exhaustion. If we were to break down below the $50 level that would obviously be a very significant turn of events and could send this market much lower. Ultimately, I think that you will get an opportunity to sell this market at higher levels.