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Crude Oil Price Forecast – Crude Oil Markets Continue to Fight

Crude oil markets initially fell during the trading session on Friday but found enough support to turn around and make another attempt to rally.
Christopher Lewis

WTI Crude Oil

The WTI Crude Oil market initially fell during the trading session but found enough support at the $52.50 level, an area that was the top of the overall consolidation area which I consider to be support for the longer-term range. The shooting star that formed on Thursday at the 50 day EMA of course caused a bit of negativity and then it broke down from there. However, to turn around and show signs of life and form a bit of a hammer, and it looks as like the market is going to make another attempt at the 50 day EMA. If we can break above there, then it’s likely going to go looking towards the 200 day EMA after that.

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Crude Oil Video 24.02.20

Brent

Brent markets fell as well, reaching down towards the $57.50 level. The shooting star from the previous session on Thursday testing the 50 day EMA, and then the market broke down from there. The $57.50 level is of course very supportive, and therefore it’s not a huge surprise to see that we had a little bit of a fight here. If we can break above the 50 day EMA just above, the market is likely to go looking towards the 200 day EMA. However, the market was to break down below the $57.50 level, it could send Brent back down to the $55 level. All things being equal though, this will continue to move back and forth based upon the latest headline out of China, and of course demand out of that area. Regardless, there is a bit of an oversupply of crude oil, so a rally is going to be difficult. However, if we do get that move, it’s likely that it will be more of a grind than anything else.

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