Crude Oil Price Forecast – Crude Oil Markets Continue to Press Support

WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied a bit during the course of the trading session on Wednesday to turn around and show signs of exhaustion. The $65 level has offered support over the last month or so, and it certainly looks as if we are trying to grind away at that support level to go lower. After all, we have made several “lower highs”, and there are a lot of concerns about the economic growth potential after the reopening trade seems to be fizzling out.

On the other hand, we could turn around and break higher, but I would not be comfortable getting long of the oil market until we break above the 50 day EMA. If we do break above there, then it is likely that the market could go higher, perhaps recapturing the overall trend. Quite frankly though, we need to see some action soon to make that happen anytime in the near term.

Crude Oil Video 19.08.21

Brent

Brent markets have initially tried to rally during the trading session on Wednesday but gave back the gains near the $70 level. The $70 level of course offers a significant amount of psychological importance of the market, and we do have the 50 day EMA crashing towards it. On the other hand, we have an uptrend line underneath it seems to be holding, so I think we are starting to squeeze and therefore will probably make some type of bigger move. It is almost as if we are forming a bit of a symmetrical triangle, which of course is also a signal that we are building up tension going forward.

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