Crude Oil Price Forecast – Crude Oil Markets Continue to See Range

WTI Crude Oil

The West Texas Crude Oil market continues to see a lot of back-and-forth trading as the $40 level is essentially a bit of a magnet for price. Ultimately, it looks as if the $37 level is support, just as the $43.50 level is resistance. Ultimately, furthermore, when I look at the 50 day EMA it is likely that the market is going to continue to go sideways due to the fact that both it and the 200 day EMA is flat. Ultimately, this is a market that I think will continue to see sideways chop more than anything else because quite frankly nobody really knows what is going to go on with fiscal stimulus. In the short term, playing the range should continue to provide gains.

Crude Oil Video 14.10.20

Brent

Brent markets also have been going back and forth in a range between $40 and $45. Overall, the 50 day EMA has offered a bit of resistance, and therefore think we could drift a little bit lower from here. If we break down to a fresh, new low, then the Brent market should drag the WTI market right along with it. At that point I would anticipate that the Brent market would go looking towards the $35 level. To the upside, it is not until we clear the 200 day EMA that I would be a buyer, and I would also pay close attention to the US dollar, because this will typically move in the opposite direction. Ultimately, this is the slow and gentle grind lower that we have seen for some time simply playing itself out.

For a look at all of today’s economic events, check out our economic calendar.