Crude Oil Price Forecast – Crude Oil Markets Continue to Consolidate

WTI Crude Oil

The West Texas Intermediate Crude Oil market has pulled back ever so slightly during the trading session on Friday to show signs of consolidation yet again. This is a market that has been dancing around the $60 level for several days now, and it now looks as if we are trying to assess whether or not there is going to be more momentum to the upside, or if we break down. Simply put, I believe that if we can break out of this range, then you follow where the market goes next. Breaking above the $62.50 level allows for a move to the $65 level, just as a break down below the $57.50 level opens up a move down to $54 or so.

Crude Oil Video 12.04.21

Brent

Brent markets also have done very little over the last couple of days, so it looks like we are trying to figure out whether or not we are going higher or lower here as well. The 50 day EMA sits just below, so that of course comes into play and could provide a little bit of support, but if we were to turn around a break down below the $60 level, the bottom could fall out in this market. On the other hand, break above the $65 level allows this market to go looking towards the $67.50 level, maybe even the $70 level. Because of this, I think that short-term traders continue to use range bound systems, recognizing that in the short term one can only hope for small little micro movements. However, once we finally do get this thing moving, we have a couple of obvious destinations.

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