Crude Oil Price Forecast – Crude oil markets continue to stagnateCrude oil markets rallied slightly during the trading session on Monday as traders came back to work but failed to impress one way or the other. At this point, it’s very likely that we will continue to see a lot of choppiness and a lack of conviction.
WTI Crude Oil
The WTI Crude Oil market rallied a bit during the trading session on Monday, but as you can see we are still within the same trading range that we had been in for some time. Because of this, there’s not much to say other than we will continue to go back and forth until there is some type of clarity. It’s obvious that there is significant support underneath at the 50 day EMA, but just above at the $50 level there seems to be just as much resistance, so at this point it’s simple short term back and forth trading for this market.
Crude Oil Video 12.03.19
Brent markets also rallied a bit during the trading session, but only slightly so. We had formed a hammer in both oil markets that we follow on Friday though, so that is in theory a good sign. However, there are plenty of reasons to think that we are simply bouncing around further, perhaps due to the questions surrounding global growth and of course by extension demand of energy.
That being said, if we broke down below the bottom of the hammer for the Friday session, that could send more selling into the marketplace. If we were to turn around and break above the $60 level, then I think that Brent at that point will probably go looking to fill the gap at the $70 level above. Expect volatility and short-term trading more than anything else.
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