Crude Oil Price Forecast – Crude Oil Markets Fill the GapCrude oil markets initially gapped lower to kick off the week but have turned around to fill that gap right away.
WTI Crude Oil
The WTI market has initially gapped lower to kick off the week, but then turned around on Monday to fill that gap. At this point it looks as if we are going to try to go higher, reaching towards the 200 day EMA again. The $41.58 level above offers resistance, and of course the 200 day EMA is likely to offer that same resistance. At this point in time it is likely that the buyers will continue to come in and try to pick up a bit of value on dips. To the downside, the market is likely to see support near the 50 day EMA currently sitting underneath the $35 handle.
Crude Oil Video 30.06.20
Brent markets also gap lower but then turned around to fill showing signs of strength yet again. At this point in time, the market is likely to see a lot of noise, but quite frankly I think it is only a matter of time before we go back to fill the gap above at the $45 region. Ultimately, I like the idea of buying short-term pullbacks as Brent has shown itself to be rather resilient. With all of this in mind, I like the idea of buying these little dips that occur, with an eye on the 50 day EMA underneath as support. Gaps do get filled eventually, and the gap in the WTI market already has been filled. In other words, it is likely that we get a move given enough time. I have no interest in shorting crude oil, at least not yet.
For a look at all of today’s economic events, check out our economic calendar.