Crude Oil Price Forecast – Crude Oil Markets Looking For Support

WTI Crude Oil

The West Texas Intermediate Crude Oil market has broken down towards the $60 level before turning around to show signs of life again. This is an area that of course will continue to offer a little bit of psychological support, as traders are worried about the possibility of noisy trading heading into the OPEC meeting, so at this point it looks like a breakdown below the lows of the trading session on Tuesday could open up further selling. The 50 day EMA is currently sitting at the $55 level, so that is probably an area that we should be paying attention to if we do break down. The impulsive trade seems to be over, and now we are forming a bit of a megaphone pattern. However, if we rally from here the $65 level will offer significant resistance.

Crude Oil Video 03.03.21

Brent

The Brent market also pulled back during the trading session on Tuesday but has found the $62.50 level before turning around and showing signs of support. At this point, the market is likely to continue to see a bit of a bounce to reach towards the $65 handle, and then possibly $67.50 above there. That being said, if we break down below the lows of the Tuesday session then I think it opens up a move down to the $60 level which is closer to the 50 day EMA. Just like the WTI grade, the OPEC meeting is going to be a major influence and of course the fact that we are forming a megaphone pattern tells you that perhaps we are starting to run into a little bit of exhaustion.

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