Crude Oil Price Forecast – Crude Oil Markets Continue to Grind

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially dipped ever so slightly during the trading session on Monday only to turn around and show signs of life again. That is a good sign, as it shows that we are still resilient in the face of significant resistance. However, it is not as if the market has made great strides to breaking out, so that is something that needs to be paid close attention to. To the upside, we have the top of the gap that still offers resistance near the $41 level, and of course we have the 200 day EMA followed by the 61.8% Fibonacci retracement level. Something else that is worth paying attention to is whether or not we can make a “lower low.” If we do, that could be a sign of trouble.

Crude Oil Video 14.07.20

Brent

Brent markets also are somewhat sideways as of late but have not filled the gap above yet. Having said that, the $44 level almost looks like it is the “line of death” that Moammar Qaddafi was talking about in the 1980s. If we can break above that level, then we are likely to go filling the gap but right now it seems like we just cannot pick up any traction. All things being equal, this is a market that I think will continue to see a lot of choppy behavior but typically these gaps do get filled eventually. However, here we are, and it does not look like we are ready to go anywhere in the short term. I have the sneaking suspicion that we will hit it very quickly when the market does decide to rally. To the downside I see a lot of support at the 50 day EMA.

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