Crude Oil Price Forecast – Crude Oil Markets Pull Back

WTI Crude Oil

The West Texas Intermediate Crude Oil market pulled back just a bit during the trading session on Tuesday but has also found a certain amount of support just below. That being said, the market is likely to see an attempt to get back towards the $50 level again, as it is a large, round, psychologically significant figure and of course an area that will attract a certain amount of attention to is due to the figure itself. If we can break above the $50 level, then it is likely that the market will continue to go higher, reaching towards the $52.50 level, and then eventually the $55 level.

Crude Oil Video 23.12.20

Brent

Brent markets pulled back a bit during the trading session as well but found the $50 level to be supportive. Ultimately, this is a market that should continue to find buyers underneath and therefore I do believe that the market will eventually continue to go higher, lease for the intermediate term, as the reflation trade continues to be a major driver. If the US dollar continues to fall, then it is likely that we will see oil markets rally. On the other hand, if there is some type of run towards the greenback again, this could send markets lower.

It is worth noting that the 50 day EMA is starting to reach towards the $50 level as well, so that should also offer support. All things being equal, I think that traders continue to buy dips as they should keep this market choppy but bullish in general. To the upside, if we could break above the $55 level, then it could lead to a massive move higher, but I do not suspect that is happening anytime soon.

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