Crude Oil Price Forecast – Crude Oil Markets Continue to DawdleThe crude oil markets fell slightly on Friday, as we continue to just slide sideways. We have a lot of different technical things going on at the same time.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has fallen just a little bit during the trading session on Friday, as we are now just below the 20 day EMA. The 50 day EMA is sitting underneath though, so it should continue to cause support. I think there is a reasonable “zone of support” city between these moving averages, and as a result I do believe that buyers will come back sooner or later. The US dollar has strengthened a little bit so that has put downward pressure, but at the end of the day the US dollar is in the cyclical downtrend, so that continues to lift at the same time. Expect choppy trading in general but I think it is only a matter of time before we the previous levels.
Crude Oil Video 03.08.20
Brent markets also look a bit lackadaisical to say the least, as we are hovering right around the 20 day EMA. The 50 day EMA sits underneath, offering a “zone of support” as well, and therefore I think it is only a matter of time before the buyers get involved here as well. The $45 level is an obvious resistance barrier, not only because it is a large, round, psychologically significant figure, but it is also the top of the gap that is so prevalent on this chart. Because of this, I think we continue to bounce around in this general vicinity and we will eventually have to make a bigger move. In the short term, simply trading back and forth seems to be the best way.
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