Crude Oil Price Forecast – Crude Oil Markets Recover After Initial Selloff
WTI Crude Oil
The West Texas Intermediate Crude Oil market has fallen a bit during the trading session on Wednesday to reach down towards the uptrend line before bouncing again. President Joe Biden suggested that he was going to ask OPEC to increase production, which caused a little bit of a short-term fall in pricing but quite frankly the markets soon realize that he was not the leader of OPEC, and the knee-jerk reaction of algorithms got knocked back. Ultimately, if we break down below the $65 level, then the bottom will fall out. However, you can also make an argument that we have just formed a double bottom and should go looking towards the $70 level.
Crude Oil Video 12.08.21
Brent markets have also pulled back due to the same comments coming out of the president, but at the end of the day the $70 level looks to be offering support and of course we are recently looking at a market that could be forming a double bottom over here as well. If we break down below the lows of the Monday candlestick, then we could drop to the 200 day EMA, but on the other hand we could turn around a break above the 50 day EMA to go looking at $75. A lot of this will come down to risk appetite and whether or not people are going to believe in the reopening trade going forward. At this point, the market is attempting to save itself so it will be interesting to see where we end up in a few days. I do believe that we get a longer-term signal sooner or later, but it may take a few sessions to get through a lot of noise.
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