Crude Oil Price Forecast – Crude oil markets respect 200 day EMA

Crude oil markets have yet to fill the gap from the weekend but did show a little bit of resiliency instead during the day on Thursday as they hovered above the 200 day EMA. All things been equal though, there is still that pesky gap to deal with, and one would have to believe sooner or later the market will.
Christopher Lewis
Crude Oil daily chart, September 20, 2019

WTI Crude Oil

The West Texas Intermediate Crude Oil market rose slightly during the trading session on Thursday but did give back about half of the gains by the time traders were looking for the exits. We are sitting just above the 200 day EMA which of course will always attract a lot of attention but you would have to think it’s only a matter of time before we break through it. While there have been more sanctions on Iran, the reality is that production is picking back up and quite frankly we have a glut of crude oil around the world right now. With that, I’m looking to fade signs of exhaustion and take advantage of a potential “fill the gap” situation.

Crude Oil Forecast Video 20.09.19

Brent

Brent markets obviously have followed the same general attitude during the day, with the exception of being just below the 200 day EMA simultaneously. They have not fill the gap either though, so one would have to think it’s only a matter time before enough negativity comes back into the market and pushing it towards the bottom of the gap. All things being equal though, it’ll be interesting to see whether or not the gap holds. If this market were to break below $60 it would be an extraordinarily negative sign. To the upside it’s obvious that the $70 level has offered significant resistance, so it most certainly should if we get there again.

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