Crude Oil Price Forecast – Crude Oil Markets Running out of Steam

The WTI Crude Oil

The West Texas Intermediate Crude Oil market has done very little during the trading session on Wednesday as perhaps we have gotten far too ahead of ourselves. The 50 day EMA sits just above at the $68.75 region and sloping lower. Ultimately, I think this is a market that if we break down below the bottom of the candlestick for the Wednesday session, we probably go reaching towards the 200 day EMA again. On the other hand, if we get a daily close above the $70 level, then we can change the overall trend. All things been equal, the next 24 hours could be very crucial as to where we go over the longer term.

Crude Oil Video 26.08.21

Brent

Brent markets have broken above the 50 day EMA to show signs of life again, as Brent is outperforming WTI for the session. Ultimately, this is a market that I think will eventually find some type of pullback in the short term, but whether or not it continues might be another question altogether. I think you will probably have to take your cues from the WTI market, as America right now is a leading indicator of where the rest of the world is going to go. At this point in time, I do think that the Brent market breaking above the $72.50 level might be reason enough to go long but we are clearly overbought in the short term. Another thing to pay close attention to is whether or not the $70 level holds as support, because that of course would catch a lot of attention. In general, this is a market that I think has gotten far ahead of itself as we head into the Jackson Hole meeting.

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