Crude Oil Price Forecast – Crude Oil Markets Pressing ResistanceCrude oil markets have done little on Friday, as we are pressing previous resistance. It was a holiday in the United States and liquidity was very low.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has done almost nothing during the trading session on Friday as Globex trading with the only thing offered. The Americans were celebrating Independence Day, and therefore most of the large participants were even in the marketplace. Beyond that, we are sitting just below the 200 day EMA, and therefore it is likely that we will see that level continues offer resistance. Furthermore, it is also the top of the previous gap, so it has built-in resistance because of that. If we can break above the $42.50 level, then I think the market probably goes looking towards the $49 level after that. Short-term, do not be surprised to see a little bit of a pullback but I would anticipate the buyers return closer to the 50 day EMA.
Crude Oil Video 06.07.20
The Brent market did almost nothing during the trading session on Friday, for the same reasons that the WTI sat still. We are right in the middle of the gap that has yet to be filled. Because of this, I believe that the Brent market will probably continue to go higher, reaching towards the $45 region. We also have the 200 day EMA sitting just above there so that could offer some resistance. When you look at this chart, you can see that we are essentially grinding away between the 50 day EMA on the bottom and the 200 day EMA above. With this, the market is being squeezed so I think it is only a matter of time before we have a significant move in one direction or the other. For now, though, we continue range trading.
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