Crude Oil Price Forecast – Crude oil markets failed to impress

WTI Crude Oil

The WTI Crude Oil market rallied a bit during the trading session on Thursday but continues to find the 50 day EMA to be resistive. That resistance is centered around the $57.50 level, and we have in fact pulled back from there rather quickly. Ultimately, this looks like a market that is trying to figure out where to go next, as we are essentially stuck between the $57.50 level and the $55.00 level underneath. With this, I think that we continue to look at short-term back and forth range bound trading but I do think that the overall attitude of the market favors the downside.

Brent

Brent markets also rallied during the day and probably made a little bit stronger statement than the WTI grade did. However, we still see the 50 day EMA above offering resistance, so I think it’s difficult to be in a situation that you can be overly bullish right now. I think we are essentially bouncing between the $65.00 level and the $62.50 level underneath. With that, I think that short-term scalping in a range bound system probably is going to be the way to go forward in this market. If we do get a significant daily close below the $62.50 level, then it opens up the idea of a move down to the $60.00 level. Alternately, if we can break above the $65 level and by extension the 50 day EMA, the market could go looking towards the 200 day EMA which is pictured in blue.