Crude Oil Price Forecast – Crude Oil Markets Continue Sideways ActionThe crude oil markets went somewhat sideways on Monday again, as we are simply consolidating in order to figure out where we go next.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has done very little during the trading session on Monday, as we continue to hang out just above the recent break out. At this point time, the market looks like it is ready to go higher but needs to build up the necessary momentum to do so. There are a lot of concerns when it comes to the demand equation, mainly because of the coronavirus infections climbing outside the United States. If that is going to be the case, then it could drive down demand. On the other hand, if we continue to see the US dollar fall, then it could lift oil by itself. I believe that the $65 level above is the current barrier that people are paying the most attention to.
Crude Oil Video 20.04.21
Brent markets also went sideways, consolidating after a huge move to the upside. After doing that, the market is likely to continue to see more upward pressure than down, with the $65 level underneath offering support. Underneath there, you have the 50 day EMA. On the other hand, if we can break above the $67.50 level, then it opens up the possibility of reaching towards the $70 level above. I do think that the $70 level is probably the longer-term target, but it is going to take a lot of effort to get there, so therefore you need to pay close attention to the fact that it has been very noisy and will continue to be going forward until we get some type of clarity when it comes to momentum. One would still have to favor the upside though.
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