Crude Oil Price Forecast – Crude Oil Markets Remain Noisy

WTI Crude Oil

The West Texas Intermediate Crude Oil market pulled back a bit during the trading session on Thursday, as we continue to grind back and forth in a relatively tight channel. This channel does have a little bit of an upward tilt to it, so I have been using this market for short-term scalping only, taking advantage of small dips in order to pick up small profits. Waiting around for a larger move is about the only thing you can do if you are looking for anything more than short-term bounces.

As far as selling is concerned, I have no interest in doing so until we break down below the $40 level. At that point in time I would anticipate that the market goes looking towards the $35 level. All things being equal though, I do like the idea of buying dips and I do think that we eventually get to the $49 level, an area of major supply.

Crude Oil Video 28.08.20

Brent

Brent markets also pulled back but did recover a bit more than the WTI market as we continue to bounce around near the 200 day EMA. The candlestick is not quite a hammer, but it does look a lot like it, so that tells me that there are buyers underneath. If we can break above the 200 day EMA again, then we should continue to grind towards the $50 level. I have no interest in shorting this market, at least not until we break down below the red 50 day EMA underneath. If we do break down below there, then we could drop towards the $40 level, but my base case scenario is the same over here as it is in the WTI market, as it is simply a “buy on the dips” scenario.

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