Crude Oil Price Forecast – crude oil markets break out

WTI Crude Oil

The WTI Crude Oil market has broken out to the upside during the trading session on Wednesday, slicing through the $50 handle, and the downtrend line that coincided nicely with it. Because of this, I think that we will eventually continue to go much higher. I think pullbacks will be supported, but I also recognize that the 50 day EMA, pictured in red on the chart, will offer a bit of dynamic resistance as well. Because of this, I believe that the market is probably a “by on the pullbacks” scenario for short-term traders. Ultimately, this is a market that should continue to be very noisy, but I do think that this break out matters.

Crude Oil Price Forecast Video 10.01.19

Brent

Brent markets also broke out to the upside, slicing through a trend line a couple of days ago, and as I record this we are now focusing on the $60 level, an area that of course is psychologically important. If we can break above there, and it certainly looks as if we are going to, I think we will continue to go higher. I believe that pullbacks should continue to offer buying opportunities, especially considering that the 20 day EMA is just below and turning higher. Ultimately, the $65 level above will be resistance but if we can clear that level, the market is probably free to go much higher. Expect a lot of volatility, but at this point I think you will have to be very cautious about shorting the market, as it certainly looks as if it’s ready to go.