Crude Oil Price Forecast – Crude Oil Markets Pull Back on Friday

WTI Crude Oil

The West Texas Intermediate Crude Oil markets have pulled back during the trading session on Friday to end the week on the back foot. Ultimately, the market is looking likely to pull back a bit further, simply because we have gotten overextended. Ultimately, the market is reacting to the US dollar strengthening, and of course the idea that perhaps the stimulus package in the United States may not be as big as once thought. Quite frankly, the demand for crude oil is not anywhere near as strong as the charts suggests, as I had mentioned over the previous couple of days. Nonetheless, I would not be a seller. I think we may find buying opportunities closer to the $50 level.

Crude Oil Video 18.01.21

Brent

Brent markets pulled back towards the $55 level, which of course is a large, round, psychologically significant figure, but if we were to break down below there, it is likely that the market could go down to the $52.50 level. We are still very much in an uptrend though, and the 50 day EMA is testing the $50 level, so that should be your “floor the market.” Ultimately, pay attention to the US dollar because it is more than likely going to be one of the bigger problems with this market. I am not ready to start selling yet, but I certainly would not step in and buy it right away. I think you probably get an opportunity to play some type of bounce underneath, based upon stimulus and perhaps a weakening US dollar. As far as demand is concerned, I do not think that has anything to do with this going on here.

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