Crude Oil Price Forecast – crude oil markets continue to churn

Crude oil markets continue to churn overall, as we see a lot of noise in this market, trying to break out to the upside.
Christopher Lewis
Crude Oil daily chart, February 20, 2019

WTI Crude Oil

The WTI Crude Oil market has of course tried to break out recently, showing signs of strength. Overall, we look as if we are ready to go higher longer term, as the Saudis are looking to cut back on production. Beyond that, if the US dollar falls it can typically give a bit of a lift to crude oil markets. The market looks very likely to continue to grind higher based upon the technical breakout, as the $55 level had been so resistive recently, and we have had a nice move higher. At this point, if we can stay above $55, we should go higher and perhaps reach towards the $60 handle. I would expect initial resistance at the $57.50 level as well.

Oil Forecast Video 20.02.19

Brent

Brent markets of course look very much the same, but during the day on Tuesday May have ran into a bit of a brick wall of resistance. It looks as if the $60 level was the “floor” of the move higher, as the $67 level has offered pretty significant resistance. If we can break above the highs from the trading session on Tuesday, then I think we will eventually go looking towards the $70 level next. Keep in mind that the crude oil markets overall look bullish but we are a little bit overextended at this point so a pullback makes sense. I look at short-term pullbacks as an opportunity to pick up a little bit of value here and there. I have no interest in shorting this market although I do recognize that a pullback is very likely in the short term.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US