Crude Oil Price Forecast – Crude Oil Markets Continue Upward Grind

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Wednesday, as we continue to see a lot of upward mobility but in short bursts. Ultimately, a short-term pullback is the best way to look for buying opportunities in this market, as we should continue to see a lot of choppiness, but I think that the falling US dollar should continue to see a lot of weakness. The 200 day EMA underneath should continue to offer support just as the market should then go looking towards the $49 level, an area where we have sold off quite drastically.

Crude Oil Video 27.08.20

Brent

Brent markets also have rallied significantly, breaking above the 200 day EMA. By breaking above the top of that moving average, the market should go looking towards the $50 level. The fact that we have had three green days in a row tells me that crude oil should continue to see buyers, and therefore we should continue to go towards that aforementioned $50 level. Short-term pullbacks are buying opportunities, and the 50 day EMA underneath is a bit of a “floor” in the market, but right now it certainly looks as if we are starting to accelerate to the upside. The storms in the Gulf of Mexico have of course helped the scenario for oil to rise, so anticipate that we should see continued buying. As far as shorting is concerned, we need to break down below the 50 day EMA on a daily close to even start thinking about that.

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