Crude Oil Price Forecast – Crude Oil Markets Continue Consolidating

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gapped higher to kick off the trading session, and then shot towards the top of the overall range. That being said, the market is likely going to continue to see a lot of noisy behavior, but if we can break above the $73 level, it is very likely that the market could continue to go much higher, kicking off a bigger leg to the upside. At that point, the $75 level rather quickly. Underneath, the 200 day EMA sits just above the $69 level and should offer a bit of a support level. In the short term, I think this is a “buy on the dips” type of trade, but longer-term we will have to wait and see which one wins.

Crude Oil Video 17.12.21

Brent

Brent markets gapped higher to kick off the trading session as well and rally a bit. We are breaking above the $75 level, which is a large, round, psychologically significant figure. What is worth paying the most attention to right now is $77, where the 50 day EMA is starting to reach down towards. At this point, the market is likely to see that as a potential resistance barrier. However, if we were to break above there it is likely that we could go looking towards the $80 level rather quickly. To the downside, I see the 200 day EMA offering support just below the $72 level, and at this point in time I think we are probably going to do more sideways trading than anything else. Regardless, you need to be cautious of the fact that we are going to be very illiquid over the next couple of weeks.

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