Crude Oil Price Forecast – Crude Oil Markets Finally Wake Up

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied significantly during the trading session on Tuesday, slamming into the 200 day EMA. This of course is a significant technical indicator that a lot of people will pay attention to, so it is worth noting that this has happened. Ultimately, I think that the markets will continue to look more bullish than bearish, and I think at this point the $40 level is likely to offer a little bit of support. If that is going to be the case, then this becomes a “buy on the dips” type of scenario that we should be paying close attention to. Underneath the $40 level it is likely that the 50 day EMA also offer support.

Crude Oil Video 22.07.20

Brent

Brent markets also rallied but have not quite reached the 200 day EMA yet, but clearly it looks as if that is what the traders are gunning for. If that is going to be the case, then we will simply follow right along with the overall “risk on” attitude that the markets have, allowing them to breathe a bit and perhaps try to take out the 200 day EMA over here. If they do, then it is likely that we go much higher, with a particular interest in the $50 level which of course is a large, round, psychologically significant figure.

To the downside I believe that the 50 day EMA and the $40 level both offer plenty of support, so I think that is about as far as this market will drop in the current trading environment that we see.

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