Crude Oil Price Forecast – Crude Oil Markets Continue To Break OutCrude oil markets have had a strong session during the day on Wednesday, breaking above the top of the consolidation area that the market had been in.
WTI Crude Oil
The WTI Crude Oil market has broken to the upside, slicing through the $52.50 level. By doing so, it looks as if the market is going to go looking towards the $54 level, an area that has been important in the past, but I think at that point we probably even go towards the 50 day EMA which is at the $55 level. A break above there then has the market targeting the 200 day EMA. I believe that the oil markets are trying to turn things around due to the oversold conditions after the coronavirus outbreak in China. At this point, the demand in China has fallen through the floor, but I think value hunters are coming back to take advantage of this.
Crude Oil Video 20.02.20
Brent markets also have rallied significantly, and have rallied even more than the WTI market, which is worth noting as it is much more influenced by China. At this point I believe that the market is going to go looking towards the $60 level, near the 50 day EMA. If we can break above there, then the market is likely to go towards the 200 day EMA. I think that pullbacks at this point will continue to be bought, as we are forming a strong base. In fact, I feel that way about both markets. I have no interest in shorting oil at this point, and I do think that it has much further to go. Ultimately, the market is at the bottom of an overall range, and now that we are bouncing it looks like we are trying to stay within the consolidation.