Crude Oil Price Forecast – Crude Oil Markets Rally On Stimulus HopesCrude oil markets have rallied quite nicely on Thursday due to purported progress in stimulus talks, and of course the US dollar getting hammered.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has rallied significantly during the trading session to reach towards the $47 level, and break above the significant resistance barrier. Now that we are above there, it looks like the market is going to continue to go towards the $50 level, because that of course is a large, round, psychologically significant figure and typically will offer a bit of a magnet for price. That being said, I think that short-term pullbacks will continue to offer buying opportunities now that we are starting to see momentum come back into the market. It looks as if the $43.50 level should continue to offer support.
Crude Oil Video 11.12.20
Brent markets have also broken out during the trading session on Thursday, as we would expect. Furthermore, we have seen the Brent market break above the psychologically important $50 level, which opens up the possibility of a move towards the $52.50 level, and then eventually the $55 level. Ultimately, this is a market that continues to see longer-term traders jump in due to the fact that the 50 day EMA is breaking above the 200 day EMA forming the so-called “golden cross.” Because of this, it is likely that bigger money may be jumping into the market. This is probably based more upon the idea of a postvaccine world, but it is not necessarily something that is based on complete demand.
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If the US dollar continues to fall, that also helps commodities, which is part of the correlation that we are seen during the session. At this point, it looks like Brent probably could go looking towards the $52.50 level rather quickly, but I think $55 will be a little more significant.
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