Crude Oil Price Forecast – Crude Oil Markets Continue Sideways DanceCrude oil markets initially tried to rally during the trading session on Friday but as we have seen more than once, the market has pulled back.
WTI Crude Oil
The West Texas Crude Oil market has initially tried to rally during the trading session on Friday, only to pullback and reach towards the $40 level. The 50 day EMA is relatively flat, but it is also an area where people will pay close attention to, due to the fact that it is a popular daily trend indicator. Furthermore, the $40 level also has a certain amount of psychological importance to it as well, so I think at this point we should be looking at this as a market that is right around “fair value.” The $43.50 level above is significant resistance, just as the $36.25 level underneath has offered support. Looking at this market, this looks like a whole lot of choppy back-and-forth noise just waiting to happen.
Crude Oil Video 26.10.20
Brent markets tried to rally a bit during the trading session on Friday, but then pulled back from that 50 day EMA as well. Ultimately, I think we probably look at short-term rallies as selling opportunities, perhaps an opportunity to reach down towards the $40 level. At this point in time, if we were to break below the $40 level, it is very likely that we could go down to the $37.50 level. That is an area that was short-term support in the past, so I think it will probably open up the door towards the $35 level. If we do rally from here, I think there is going to be massive amounts of resistance at the 200 day EMA, which is closer to the $45 level. I expect choppy back-and-forth trading more than anything else though.
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