Crude Oil Price Forecast – Crude Oil Markets Sideways

West Texas Intermediate Crude Oil

The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Thursday as we have no idea what to do with ourselves. Ultimately, this is a market that has been trading between the $50 level on the bottom and has been paying close attention to the $55 level above. In other words, we are simply range bound, but it is worth noting that the last couple of weekly candlesticks have form shooting stars, which is technically a bearish signal. I do not necessarily know that oil is going to melt down anytime soon, just that it is obviously facing a lot of resistance.

Crude Oil Video 29.01.21

Brent

Brent markets have also gone back and forth during the trading session, taking a look at the $55 level as a bit of a magnet for price. Ultimately, I think that we are trying to figure out whether or not demand is going to increase, because there is the so-called “reflation trade” that a lot of people that are in the market trading upon, as the vaccine should open up the world’s economy. Nonetheless, at this point it seems like we are simply trying to burn off some of the froth that had been in the market previously, so I like the idea of looking for dips as potential buying opportunities, at least until we would break down below the $50 level, something that is not to be easy to do in the short term. With everything being said, it certainly still looks bullish, but perhaps most people are simply trying to catch our breath.

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