Crude Oil Price Forecast – Crude oil markets run into resistance

WTI Crude Oil

The WTI Crude Oil market rallied significantly during the early hours on Monday, breaking above the $60 level for some time before pulling back. At this point, the $60 level of course will attract a significant amount of selling pressure due to the round figure, so it makes sense that we aren’t quite ready to break out yet. If we can break above the top of the daily candle stick though, that would be a buying opportunity, perhaps sending this market towards the $62.50 region. That was the scene of a significant break down recently, so it would make sense that there is a lot of resistance built up in that area. To the downside, I see a significant amount of support underneath at the 50 day EMA which is pictured on the chart in red.

Crude Oil Video 02.07.19

Brent

Brent markets rallied a bit during the trading session as well, breaking above the 50 day EMA before rolling back over to form a bit of a shooting star. There is a significant barrier above there as well in the form of the 200 day EMA. At this point, it looks as if we aren’t quite ready to go to the upside, but we do have a significant amount of support at the $64 level. Ultimately, this is a market that should continue to do a back and forth on short-term charts. If you’re a range bound scalper, this is probably the market for you. All things being equal though, with the correlation between the two markets, if the WTI market breaks out to the upside, it’s likely that Brent will follow right along.

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