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

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Monday to kick off the week, reaching towards the top of the previous gap that of course has attract a lot of attention. The 200 day EMA sits just above, and that of course will cause a certain amount of resistance as well. Because of this, I think it is a little bit difficult to break to the upside, but if we were to close on a daily candlestick well above that 200 day EMA, the market is likely to go looking towards the $49 level. Otherwise, we could likely pull back a bit, maybe a couple of dollars.

Crude Oil Video 07.07.20

Brent

Brent markets have rallied as well but have not filled the gap, so I think that if one of these market ends up outperforming the other, it is probably going to be that Brent has more room to run. The 200 day EMA sits just above the previous gap, so that will be worth paying attention to as well, just as the 50 day EMA sits below the bottom of the previous gap. In other words, we are right in the middle of a lot of different technical indicators. I think the easiest trade to take here is to buy short-term dips, but not necessarily to look for massive moves. All things being equal, I think that we continue to see volatility in this general vicinity as the market is trying to find its next trading range.

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