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Crude Oil Price Forecast – Crude Oil Markets Face Resistance

Crude oil markets rallied initially during the trading session on Monday but ran into a bit of resistance in order to show signs of sluggish behavior in the crude oil markets. That being said though, the New Year’s Day holiday of course has a certain amount of influence on what happens.
Christopher Lewis
Crude Oil Price Forecast - Crude Oil Markets Face Resistance

WTI Crude Oil

The WTI Crude Oil market has rallied initially during the trading session on Monday, reaching towards the $62.50 level before rolling back over. This shows that we are going to struggle to go higher, especially this time of year. That being said, the $62.50 level looks to be massive resistance, and a grind higher is going to take a significant amount of effort. Underneath, I believe that the $60.00 level offers support. That being said, the market is a little bit overextended and the volume is going to disappear, so I think a short-term pullback makes quite a bit of sense here.

Crude Oil Video 31.12.19

Brent

Brent markets rallied as well, reaching towards the $67.50 level before pulling back and forming a bit of a shooting star. This is a market that looks as if it is ready to rollover as well, but at this point the market is going to find quite a bit of support at the $65.00 level. It’s interesting that the Brent market has shown itself to potentially form a “golden cross”, which is when the 50 day EMA crosses above the 200 day EMA. At that point, it’s very likely that the market will continue to find plenty of interest due to the fact that longer-term traders look at that as a strong signal. That being said though, I think that short-term pullback makes the most sense out of everything, especially considering that it’s a holiday week.

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