Crude Oil Price Forecast – Crude Oil Markets Continue To Find Support

WTI Crude Oil

West Texas Intermediate Crude Oil markets pulled back a bit during the trading session after initially gapping higher. By pulling back towards the $52.50 level, we have reached the top of the overall range. At this point, as long as we stay above the $50 level, we are still within the tolerance of the overall trading range. Because of this, there is much more risk to the upside than the down, and we could reach as high as $57.50 which is the “fair value” level as it is the center of the overall range. At this point, the market looks to be a bit undervalued so rumors of OPEC cutting production are going to be especially impressive.

Crude Oil Price Forecast Video 30.01.20

Brent

Brent markets gapped higher and then went back and forth as well, as we are at the very bottom of the range in this market also. That being the case, the market looks as if it is ready for a bounce over here as well. Quite frankly, all it needs is a little bit of a push to get going towards the $63.50 level above where the major moving averages converge. If we break down below the $55 level, that would change everything but at this point I do not think that we have the momentum to do that. At the very least, we are probably looking at a short-term bounce from an oversold condition. Expect a lot of volatility in choppiness, but the path of least resistance at this point is probably to the upside.

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