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Crude Oil Price Forecast – Crude oil markets quiet ahead of Fed

By:
Christopher Lewis
Updated: Apr 10, 2019, 16:39 UTC

During the trading session on Wednesday, the crude oil markets were very quiet ahead of the Federal Reserve Meeting Minutes. Quite frankly, the inventory numbers also will come into play, and we are at a technically resistive area in at least one of the grades we follow here at FX Empire.

Crude Oil daily chart, April 11, 2019

WTI Crude Oil

The WTI Crude Oil market did almost nothing during the trading session on Wednesday ahead of the meeting minutes and of course the inventory number coming out this week. Ultimately, the $65 level of course offers a lot of resistance , not only from structural resistance, but also a psychological resistance region. In general, this is a market that should continue to be noisy, but I think a pullback only makes sense. That gives us an opportunity to pick up a bit of value, especially near the $62.50 level. Overall, it’s likely that waiting for a dip will probably be the best way to go. Ultimately though, if we break above the $65 level on a daily close, then it’s time to start buying which should be a massive breakout. Regardless though, there is no interest in shorting.

Crude Oil Price Forecast Video 11.04.19

Brent

Brent markets rallied during the trading session on Wednesday, but still remains somewhat subdued as we have clear the vital $70 level. Ultimately, just as we are seeing in the West Texas Intermediate contract, the 50 day EMA is getting ready to cross above the 200 day EMA, forming a “golden cross.” That of course is a very bullish sign and could send more longer-term money into this market. As OPEC isn’t meeting until June at the very earliest, it’s unlikely that production will be increased. This is a tight supply story, so I do think that pullbacks will be buying opportunities.

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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