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Crude Oil Price Forecast – Crude Oil Markets Continue To Test Major Resistance

Crude oil markets rallied a bit during the trading session on Thursday, as we continue to press major resistance. At this point in time though, we simply don’t have enough momentum to go anywhere.
Christopher Lewis
Crude Oil Price Forecast - Crude Oil Markets Continue To Test Major Resistance
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WTI Crude Oil

The WTI Crude Oil market rallied a bit during the trading session on Thursday but continues to see a lot of resistance in the $60 region. This is the beginning of significant resistance extending to the $62.50 level, and therefore think it’s only a matter of time before exhaustion sets and we pullback. Underneath, I see a lot of support near the $58 level, and of course underneath there at the 200 day EMA and the 50 day EMA which is getting ready to cross above it to form the “golden cross.” I think this is more or less a scenario where we start to buy on the dips, but only for short-term moves.

Crude Oil Forecast Video 13.12.19

Brent

Brent markets rallied a bit during the trading session on Thursday, testing the $65 level. This is the top of a larger consolidation area and it makes sense that if we break above there, the market should then go looking towards the $67.50 level. All things being equal, I do think that the market continues to try to break out, but we need some type of catalyst. We don’t have it yet but clearly, we can’t be sellers of crude oil with any type of conviction either. The tenacity of this move continues, but if we were to break down below the $62 level it’s likely that Brent will continue to fall. With this, I believe that short-term buying on the dips continues to work, just as it does in the West Texas Intermediate Crude market. Expect a lot of choppy behavior.

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