Crude Oil Price Forecast – Crude Oil Markets Pull Back Slightly

WTI Crude Oil

The West Texas Intermediate crude oil has pulled back just a bit during the course of the trading session on Thursday, as we approached the 50 day EMA and of course the $70 level. At this juncture, it is likely that we would see a little bit of a pushback, because quite frankly we have bounced so much in such a short amount of time. If we can break above the 50 day EMA, that would also be very bullish, as it could set up the next move higher. However, we have recently seen such a massive move to the upside, it would make a certain amount of sense that we at least pull back. It is worth noting that the 200 day EMA has held so far, so that is somewhat bullish.

Crude Oil Video 27.08.21

Brent

The Brent market has been a little soft as well during the trading session, but unlike the WTI grade of crude oil, it currently sits just above the 50 day EMA. With that being the case, I think it is only a matter of time before we attempt to make yet another high, but if we were to break down below the $70 level, then it is possible that we could retest the 200 day EMA. It is obvious to me that people are still extraordinarily bullish when it comes to crude oil, but we also have to worry about the global situation, as the Federal Reserve tightening up monetary policy could work against it. At this point in time, it seems like we will continue to see very volatile moves in both directions.

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