Crude Oil Price Forecast – Crude Oil Markets Continue to Consolidate Gains

WTI Crude Oil

The West Texas Intermediate Crude Oil market went back and forth during the trading session on Thursday, as we are trying to digest some of the gains from the recent shot higher. If we can break above the highs of the trading session on Thursday, extensively clearing the $73 level, that is very likely we go looking towards the $75 level next. With this being the case, the market is very likely to continue seeing volatility, so the question now is which way to we break? I will be paying close attention to a daily close above 73 is a buying opportunity. If we break down towards the 200 day EMA, I will be paying attention to see if the buyers step in to pick the market up.

Crude Oil Video 10.12.21

Brent

Brent markets have done the same of course, as we are trying to come to grips with the massive recovery from the plunge lower. The question now is whether or not crude oil will recover in the short term? I think the next couple of days are going to be very important as to where we go longer term, so I almost look at the Thursday candlestick as a bit of a binary situation. If we break above it, then I think we go higher. If we break below it, then we probably go looking towards the 200 day EMA underneath, which currently sits just underneath the $72 level. That being said, the market is likely to continue to be noisy, but whether or not we get growth is a completely different question. I would not be surprised at all to see Friday be more grinding consolidation in both of these grades.

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