Crude Oil Price Forecast – Crude Oil Markets Look Heavy

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially tried to rally during the trading session on Monday but gave back the gains to show lackluster performance. At this point, it is very likely that we could go down towards the $50 level, which of course is a large, round, psychologically significant figure. That is an area that had previously been resistive so of course it should be structurally supportive as well. This is not to say that crude oil markets will necessarily stop falling there, but it is the most likely of buying opportunities. At this point, we are essentially between two major areas, so I think a pullback to that area makes quite a bit of sense as we are a bit exhausted.

Crude Oil Video 26.01.21

Brent

Brent markets have initially tried to rally as well but have pulled back to show signs of weakness again. The $55 level is sitting just below and is essentially “fair value” due to the fact that the major support is at the $50 level, which is also backed up by the $51 level where the 50 day EMA is sitting at. To the upside, the $60 level looks to be resistance, based upon structural reactions in the past. With this being said, I think that we are probably best leaving this market alone until we get some type of impulsive candlestick, which we can follow. I suspect that we are at the very least need to work off a little bit of a froth, so the fact that we have done very little over the last two weeks should not be much of a surprise.

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