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Crude Oil Price Forecast – Crude oil markets pull back after Trump Tweet

By:
Christopher Lewis
Updated: Feb 25, 2019, 16:50 UTC

Crude oil markets got hammered during the trading session after Donald Trump tweeted that OPEC needed to bring prices of crude oil down. Regardless, we were at significant resistance so it makes sense that we got a shock selloff.

Crude Oil daily chart, February 26, 2019

WTI Crude Oil

For some reason, the market seems to think that Donald Trump runs OPEC. Regardless, the machines sold off the WTI markets and ran them down towards the $55.70 level. This is an area that is previous resistance, so it makes sense we went straight down there. Intraday, the market has been very choppy since going down there so it does look like we could turn around and try to reach towards the upside. Overall, I think that a pullback makes sense but we obviously have a lot of buying pressure underneath.

Crude Oil Video 26.02.19

Brent

Brent markets fell during the trading session as the 200 day EMA brought in some bearish pressure. The market looks very likely to find buyers underneath, especially near the $64 level, which was a previous resistance barrier. The 50 day EMA is turned around just below there and looks to go higher, so I think it’s only a matter of time before the buyers will come in and pick up a bit of value. Most of the selloff was due to machines selling off the Donald Trump tweeted, and quite frankly I don’t know that the bearish pressure is sustainable. However, I do believe that value hunters are going to come in and pick this market up when cheap prices come back, as we have been building a significant base, and have recently broken out. At this point, it’s very unlikely that the US dollar will strengthen, so that should also help the crude oil market go higher.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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