Crude Oil Price Forecast – Crude Oil Markets Continue Sideways Chop

WTI Crude Oil

The West Texas Intermediate Crude Oil market was slightly negative during the trading session on Tuesday as we continue to hang around the $45 level. This is a market that has plenty of support underneath though, so I do think that it is only a matter of time before buyers come back into pick up this marketplace. The $43.50 level was a significant break out previously and has already shown itself to be somewhat supportive. I would not be surprised at all to see this market pullback towards that area, before turning around and rally towards the $50 level above. All things being equal, this is a market that is going to be driven by risk appetite, which seems to be slowing down just a bit.

Crude Oil Video 09.12.20

Brent

Brent markets also were relatively quiet during the trading session on Tuesday, although the market does appear to be trying to build up a little bit of momentum again. Ultimately, this is a market that will eventually go looking towards the $50 level and it is worth noting that we are looking for the 50 day EMA to cross above the 200 day EMA forming the so-called “golden cross” that the longer-term traders use. Personally, I have found that particular indicator to be useless, but occasionally it will kick off a multi-month rally.

I do not think we are anywhere near that, and at this point we are simply trying to build up enough momentum to break through $50. I do not know that we can do that, but if we do, the next target would be $52.50. I do not have any interest in shorting crude oil at the moment, even though I think that demand will be enough to elevate price for very long.

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