Crude Oil Price Forecast – Crude Oil Markets Continue To Test Fair ValueThe crude oil markets went back and forth during the trading session on Tuesday but are showing signs of support so that of course is a good sign. We are oversold in the short term, so a bounce is possible.
WTI Crude Oil
The West Texas Intermediate Crude Oil market went back and forth during the trading session on Tuesday as we continue to hover above the $57.50 level. That is an area that is considered to be “fair value”, as it is the middle of the larger consolidation area between the $50.00 level underneath, and the $65.00 level above. Furthermore, there is the 200 day EMA sitting right there as well which of course attracts a lot of attention. Ultimately, this is a market that I think continues to go back and forth in this area, and if we can overtake the 50 day EMA to the upside, then it’s likely that we could go looking towards the $62.50 level. Otherwise, if we break down below the $57 level, then markets probably break down towards the $55 level after that.
Oil Forecast Video 15.01.20
Brent markets also are sitting on top of the 200 day EMA and is also at roughly the midpoint between the support and resistance from a longer-term trading. At this point, if we were to break down below the $63 level, then I think the market goes looking towards the $60 level. Otherwise, if we can overtake the $65 level then it’s likely that the Brent market will go looking towards the $67.50 level. A lot of the headlines have calmed down, but we are still technically in an uptrend and have started to reach towards the uptrend line that you can make from the beginning of October. Ultimately, we will make a decision rather soon.
Please let us know what you think in the comments below