Crude Oil Price Forecast – Crude oil markets do nothing on Tuesday

WTI Crude Oil

The WTI Crude Oil market initially tried to rally during the trading session on Tuesday but gave back the gains to finish a relatively flat later in the day. This is a market that is hanging around the 50 day EMA, so you should not be surprised at all that the market is essentially “stuck.” We are in the middle of a five dollar consolidation area that starts at the $55 level underneath and extends to the $60 level above. With that in mind, it’s very likely that we will continue to see a lot of back-and-forth and choppy action as markets look a bit confused.

Oil Forecast Video 10.07.19

Brent

Oil Forecast Video  initially tried to rally during the day but gave back quite a bit of the gains at the $65 region. Because of this, the market looks as if it is trying to break out above there, but there is a thick wall of resistance that extends a couple of dollars, so I don’t think it’s going to happen in the short term. If we did break above the 50 day EMA, that could send the market higher, perhaps reaching towards the $67 level. However, with the trading action that I see for the day I think it’s more likely that the market rolls over to reach towards the $63 handle. Looking at this chart, it looks slightly more negative than positive, because quite frankly the eight shooting star from Monday is certainly something to pay attention to in a down slipping 50 day EMA.

Please let us know what you think in the comments below