Crude Oil Price Forecast – Crude Oil Markets Recover After Initial SellingThe crude oil market had seen a bit of selling pressure early during the Friday session, but have bounced quite nicely to form hammers.
WTI Crude Oil
The West Texas Intermediate Crude Oil market initially fell during the course of the trading session on Friday but found enough support near the 50 day EMA and perhaps even more importantly the $70 level to turn around and form a bit of a hammer. With that being the case, the market looks as if it is ready to go higher, at least in the short term as it looks like we are simply consolidating the previous gains. At this point, the world is waiting to figure out whether or not OPEC+ can come to an agreement to allow the production of crude oil to be stable again.
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At the same time, we have seen a lot of noise coming out of the US dollar, which can have a negative correlation on this market as well if it starts to strengthen. If we break down below the $70 level, we probably go looking towards the $67.50 level.
Crude Oil Video 19.07.21
The Brent market also fell significantly during the course of the trading session on as well, but just as we had seen of the WTI market, the 50 day EMA as offered enough support to turn this thing around. At this juncture, it looks like we are trying to form a bit of a consolidation zone, so that is worth paying attention to as well. If we see the US dollar strengthen though, that might be enough to push this market down towards the uptrend line. After that, we have the $70 level that should also offer support. Quite frankly, I do not have any interest in trying to short the market, but I recognize that we have a lot of noise ahead of us.
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