Crude Oil Price Forecast – Crude Oil Markets Recover at Crucial Level

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied a bit during the course of the trading session on Tuesday, as we bounce from a significant uptrend line. That being said, there are still a couple of things to think about just above that could cause a significant amount of resistance. To begin with, we have the $70 level which of course is a large, round, psychologically significant figure, and will attract a lot of attention. Beyond that, we also have the 50 day EMA which is turning lower from that area, adding yet another technical reason to think that perhaps we are going to struggle.

To the downside, the $65 level has formed a little bit of a “double bottom”, but we have yet to see enough upward momentum to get excited, because quite frankly we recently formed a “lower low”, so the market is hanging on by a precarious thread to say the least.

Crude Oil Video 11.08.21

Brent

Brent markets rallied quite nicely during the day as well, filling the gap from the Monday open. The 50 day EMA is sitting above and tilting lower, so it should offer a little bit of resistance going forward. On the other hand, if we break above there then it is likely that Brent goes looking towards the $75 level. If we turn around a break down below that double bottom at roughly $67.50, then we go looking towards the $65 level rather quickly. In general, the market does look as if it is trying to structure, but we have not technically done so quite yet. However, we have some real decisions to make over the next couple of days.

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