Crude Oil Price Forecast – Crude oil markets continue to grind sideways

WTI Crude Oil

The WTI Crude Oil market broke down a bit during the trading session on Tuesday, slicing through the 200 day EMA. The $57.50 level has been very supportive over the last several sessions, so we can break down below that level it’s likely that we will then eventually go looking towards the bottom of the gap closer towards the $55 level. At this point, the gap has yet to be filled but there have only been two gaps in the last 30 years that have not been filled. Because of this, the odds do in fact favor that this market could drop down, trying to fill that vacuum.

Oil Forecast Video 25.09.19

Brent

Brent markets of course look very much the same, with the exception of the strength of the bounce. Having said that, we are still bouncing around between the 50 day EMA on the bottom and the 200 day EMA on the top. If we can break down below the 50 day EMA, then it’s very likely that we go looking towards the $60 region as it is where the gap is from the drone strike. All things being equal, the demand for crude oil is a bit weak, so at this point it is probably only a matter time before we sell off yet again. That being said, if the 200 day gets broken to the upside, then it’s possible that the market could go to the $67.50 level.

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