Crude Oil Price Forecast – Crude oil markets quiet on Friday

WTI Crude Oil

The WTI Crude Oil market has gone back and forth during the trading session on Friday, dancing around the 200 day EMA. Below current trading we have a lot of support as well due to the gap ahead of the Wednesday session. Above current trading, we have the $60 level that could offer significant resistance, so if we were to break above there the market could go higher, perhaps reaching towards the $62.50 level. Ultimately, this is a market that has broken out so we have to think about the market as one that is solely reacting to headlines, especially the US/Iranian ones.

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Brent

Brent of course is doing the same thing, essentially hanging just above the $65 level. The 50 day moving average above is resistance, so if we can break above there then I think the market could go towards the $67.50 level which was previous support. These markets move in concert, so if we go in one direction or the other and one of them, the other one should follow right along.

Overall, this is a market that has just finished a “W pattern”, which is a very strong sign for buyers, as we may have put in a bottom. However, there is a lot of noise above, not only the $67.50 level being one of them, but the $70 level being another area where we could cause significant troubles as well. This is a market that is trying to break out, but is currently waiting for the next catalyst.

Please let us know what you think in the comments below