Crude Oil Price Forecast – Crude Oil Markets Fall Hard On FridayCrude oil markets fell hard during the trading session on Friday, reaching down towards an uptrend line that continues to be supportive it is now being tested. Quite frankly, when you look at the longer-term charts we are simply trading around fair value.
WTI Crude Oil
The WTI Crude Oil market broke down significantly during the trading session on Friday, breaking below the 50 day EMA, reaching towards the $55 level. That is an area that is essentially “fair value”, which is in the middle of the overall range that we have been trading in. The $50 level underneath is massive support, and the $60 level above is the resistance barrier. At this point in time, the market is trading back and forth in this range, and with OPEC meeting next week, it makes sense that the market would hang a right in the middle of the range.
Brent markets broke down significantly during the trading session on Friday as well, reaching towards the $60 level. We have been bouncing around in a range for some time and now we are back at “fair value” as we head towards the OPEC meetings in the middle of next week in Vienna. The question now is whether or not we can continue to see the market go back and forth, and at this point it’s likely that we continue to see plenty of volatility. However, if we were to break down below the $60 level, it’s likely that we will then go looking towards the $57.50 level. If we bounce from here, the market probably has a bit of a lead at the 200 day EMA which is closer to the $63.40 level. With this, there may have been a lack of liquidity on Friday that exacerbated the situation.
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