Crude Oil Price Forecast – Crude Oil Markets Continue To Pull Back

WTI Crude Oil

The West Texas Crude Oil market gapped a little bit lower to kick off the trading session on Tuesday, breaking towards the $62 level. However, there are still plenty of reasons to think that the oil markets will be noisy at the very least, and perhaps explosive if things get worse. To the upside, I see the $65 level as massive resistance, and the fact that we could not break above there is something to pay attention to. However, there are a lot of headlines risks out there just waiting to cause issues. If we were to break above the $65 level, it would be extraordinarily bullish. If we are getting ready to break down below the $61 level, then the market will probably go looking towards the 50 day EMA after that.

Oil Forecast Video 08.01.20

Brent

Brent markets also gapped lower and then shot towards the $60 level. The market looks likely to go down towards the $67.50 level, possibly even the $66 level after that. After forming a massive shooting star at resistance and the psychologically important $70 handle, it makes sense that we would get a bit of a pullback. We have recently seen the “golden cross” form when the 50 day EMA crosses above the 200 day EMA, so don’t be surprised at all if longer-term traders are still trying to push this market to the upside. That being said, a pullback could be thought of as a buying opportunity so perhaps waiting for a bit of a bounce at lower levels might be the best way to play this market.

Please let us know what you think in the comments below