Crude Oil Price Forecast – Crude Oil Markets Drift Lower

WTI Crude Oil

The WTI Crude Oil market dropped a bit during the trading session on Friday, testing the 50 day EMA again. It is currently hanging around the $59 level, but what’s even more important in my estimation is that the Thursday candlestick was in fact a hammer. That’s a very bullish sign and if we can break above the top of that hammer, the market is likely to bounce towards the $62.52 level. However, if we break down below the bottom the hammer from the Thursday session, it’s likely that we could go down to the 200 day EMA underneath, which is currently at the $57.82 level. However, you should wait on a daily close one way or the other before putting money to work.

WTI Oil Video 13.01.20

Brent

Brent markets also pulled back slightly during the trading session on Friday, to test the $65 level. Just below, we have the 50 day EMA that is turning to the upside, and the market is currently trading within the range of the Thursday hammer over here as well. That being the case, it’s very likely that the market will find some buyers underneath and cause that short-term bounce if we can break above the Thursday hi over here as well. Ultimately, this is a market that should continue to see a lot of choppiness, but as we start to get close to the end of the session on Friday, it does look like a little bit of a stand is trying to be made here. However, if we were to break down below the 200 day EMA, then the market could break down to the $60 level.

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