Crude Oil Price Forecast – Crude Oil Markets Continue ConsolidationCrude oil markets have been grinding back and forth over the last couple of days, and as a result it has been ideal for scalping the market.
WTI Crude Oil
The WTI Crude Oil market has done truly little during the trading session on Tuesday, as we are essentially stuck between two major levels. The 200 day EMA is just above the top of the previous gap at the $41.50 level, while the 50 day EMA is currently at the bottom of that same gap near the $34.50 level. Because of this, I think we keep a bit of a range bound tone in the market, as we do not have anywhere to be quite yet. We are either killing time and trying to find enough pressure to go to the upside, or we will roll over. Until we break out of this previous gap area though, it is just range bound back and forth trading.
Crude Oil Video 01.07.20
Brent markets of course look similar, as they have been bouncing between the 50 day EMA and the 200 day EMA as well. However, unlike WTI, the Brent market has not filled the gap, so it probably has more of a chance of rallying at this point. I think we are likely to see the market reached towards the $45 level eventually, but it is going to be very choppy between here and there. If you are looking to make money going long the Brent market, the easiest part of that trade is already over. That being said, gaps do tend to get filled so I would have to think that we probably continue to just grind higher over the next couple of weeks.
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