Crude Oil Price Forecast – Crude Oil Markets Continue to Test Barrier

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Tuesday, as we continue to test the 50 day EMA. The 50 day EMA continues to be a major barrier for markets to contemplate, as it is going sideways. At this point, the fact that the market has gone sideways for the last several days in a row tells you that we are about to make some type of decision. From a technical analysis standpoint, it looks as if there is a lot of resistance between here and the $30.00 level, so signs of failure would probably invite a lot of selling pressure. If we do break down, the $25 level opening up to the $20.00 level is likely. If we were to break above the $30 level, then we will go higher to fill the gap above.

Crude Oil Video 13.05.20

Brent

Brent markets also have been going back and forth over the last several days, hanging around the $30.00 level. The 50 day EMA is just above, so if we were to break above that level, then it is likely that the market goes looking towards the $35 level, possibly even the $40 level after that. To the downside, if we break down below the $28 level, the market is likely to go down to the $25 handle and then eventually the $20 level. Ultimately, we are in a downtrend so I do favor the move to the downside but will do with the market tells me to do.