Crude Oil Price Forecast – Crude Oil Markets Continue to Put Traders to Sleep
WTI Crude Oil
The WTI Crude Oil market has basically sat still during the trading session on Friday again, initially dipping towards the $40 level before turning around to rally again. To me it looks as if we are trying to build up the necessary momentum to break out to the upside, and in a sense, I think this is more about the US dollar than anything else. We are seen a lot of the same stuff in the FX markets, so it makes sense that we would struggle to break higher. Furthermore, the 200 day EMA is sitting right there are a lot of technical traders will pay attention to that. If we can break out, the market is likely to go looking towards the $49 level. Underneath, the 50 day EMA continues to be a bit of support.
Crude Oil Video 20.07.20
Brent markets pulled back a bit during the trading session as well but turned around to show signs of life. Ultimately, this is a market that is stuck between the 50 day EMA and the 200 day EMA and sitting in the middle of a massive gap. We have yet to fill the gap so I would assume that we go higher, so I look at pullbacks as potential buying opportunities. If we can break above the 200 day EMA the next target will be the $50 level, followed possibly by the $55 level. The 50 day EMA sits just below the $40 level below and should be relatively supportive if the markets break down in that general vicinity.
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