Crude Oil Price Forecast – Crude Oil Markets Pulling Back From Resistance
WTI Crude Oil
The West Texas Intermediate Crude Oil market is currently pulling back from a significant resistance barrier, with the $70 level offering quite a bit of noise. At this point, the market is likely to see a lot of noise over the last couple of days, but if we break down below the $67 level, this market could come undone. At that point I would expect a move down to the $65 level, followed by the 200 day EMA. To the upside, if we can clear the $70 level, then WTI is likely to go looking towards the $74 level.
Crude Oil Video 02.09.21
Brent markets also tried to rally but are also facing not only resistance in the form of the last couple of days, but it is also struggling with the trendline that is clearly etched out on the chart. If we break down below the $70 level, it is likely that the market goes lower, perhaps reaching towards the $65 level. On the other hand, if we can finally clear this uptrend line then it would open up the possibility of a move towards the $75 above. Pay close attention that the US dollar, because quite frankly it can have a negative correlation to this market, but it should be noted that as the US dollar lost ground on Wednesday, oil still fell. That does suggest that perhaps oil is in bigger trouble than we thought. There are a lot of signs out there that perhaps the economy is slowing down globally, and that will continue to push markets lower when it comes to energy if that pans out to be true.
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