Crude Oil Price Forecast – crude oil markets rally to confirm support

WTI Crude Oil

The WTI Crude Oil market rallied a bit during the trading session on Tuesday, using the $50 level as support. The 20 day EMA underneath is starting to turn higher, and it sits just below that level. The 50 day EMA above is offering resistance, and as I have said recently, I think the next move will be based upon a break of one of those levels. If we can break above the 50 day EMA, that could send this market much higher, perhaps reaching towards the $57.50 level, perhaps even the $60 level. At this point, I think pullbacks will continue to find plenty of support though, and I do think that the market will continue to find value hunters.

Oil Forecast Video 16.01.19

Brent

Brent markets continue to show signs of support at the 20 day EMA, and the 50 day EMA above is resistance. If we can break above the 50 day EMA over here, we will probably go to the $65 handle. If we can break out above that level, then we continue to go much higher. If we break down below the 20 day EMA, we will probably go looking towards the $55 level, an area that should be supportive. We have recently broken through a downtrend line, and that of course is generally a good sign of a trend change. Ultimately, I think that the market will find plenty of value hunters out there, and I do think that after the market has sold off the way we have recently seen, at the very least we are looking for some type of bounce.