Crude Oil Price Forecast – Crude Oil Markets Filling the Gap

West Texas Intermediate Crude Oil

The West Texas Intermediate Crude Oil market initially pulled back during the trading session on Tuesday but found enough support to turn around and rally to fill the gap above at the $41 level. The 200 day EMA is sitting just above, so you should keep in mind that the indicator will probably attract a lot of attention. With that being the case, I do like the idea of taking advantage of signs of exhaustion as we probably drop down towards the 50 day EMA. Ultimately, the market will go looking towards the range, which I think at this point it is likely we will see the markets bounce around between $30 and $40.

Crude Oil Video 24.06.20

Brent

Brent markets initially pulled back as well but has also rallied to show that it is trying to reach towards the top of the gap, although we have some work to do. The 20 day EMA is sitting just above that area, so I think we are somewhat limited in our uptrend. This is an extraordinarily strong looking trend, and I do not necessarily think that we are suddenly going to turn around, but it is obvious that we will probably need to find some type of range. Crude oil tends to move in $10 increments, so I think at this point we will simply be looking for that. I think a pullback from the 200 day EMA makes quite a bit of sense, as it is so highly followed by technical traders around the world. That being said, I think the one thing you can count on is a lot of volatility.

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