Crude Oil Price Forecast – Crude Oil Markets Continue to GrindThe crude oil markets fell on Monday, but then turned around to show signs of life again. This is a market that is trying to chip away at major resistance.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has pulled back a bit to the $40 level, an area that is a large, round, psychologically significant figure. It is an area that that of course has been attracting a lot of attention and has offered a short-term floor. Ultimately though, the 200 day EMA is just above and if we can break above there then it is likely that we go looking to fill the gap towards the $43.50 level. At this point in time I believe that the crude oil market continues to be a “buy on the dips” type of situation.
Crude Oil Video 21.07.20
Brent markets have initially pulled back a bit during the trading session on Monday only to turn around and show signs of strength again. The $43 level seems to be a bit of a magnet for price, and we still have a gap above that needs to be filled. The $46 region will be attractive, and I think that the 200 day EMA will offer plenty of resistance there also. We are currently trading in roughly the middle of the gap that had been so prominent in this market, and then of course underneath there is the 50 day EMA which is sitting near the $40 handle.
All things being equal, this is a market that continues to be very range bound, so you need to pay attention to that so that we can trade back and forth. I think there is still a little bit more in the way of upward value, so I am not too keen to short this market.
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