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Crude Oil Price Forecast – Crude Oil Markets Continue to Reach Towards Top of the Gap

By:
Christopher Lewis
Published: Jun 22, 2020, 15:45 UTC

Crude oil markets have rallied on Monday after initially gapping lower. This looks like we are ready to go towards the top of the gap again.

Crude Oil WTI Brent

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Monday after initially gapping lower, reaching towards the $37 level as a rank this. The $41 level above is currently the top of the gap, and it has not been filled. It is because of this that I think we eventually get up to that area and test it as it is a common technical play. The 200 day EMA sits just above there and that of course will attract a certain amount of attention as well. At this point, there would be a serious fight on board, and I think we would probably be looking towards pulling back into some type of an eventual range.

Crude Oil Video 23.06.20

Brent

Without a doubt, Brent markets have further to go than the WTI market, as we need to reach the $45 level to fill the gap. At this point, the market will probably pull back towards the $40 level, possibly even the $35 level. At this point in time, the 50 day EMA should offer support which is currently sitting at the $36.90 level. I think we will eventually figure out a longer-term range, but right now we just do not know where that is going to be. With that being the case I like the idea of buying at this point and then closing out closer to the $45 level. If we were to break above the 200 day EMA, then we could probably go looking towards the $50 level next.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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