Crude Oil Price Forecast – Crude Oil Markets SlumpCrude oil markets were a bit sluggish during the trading session on Monday, but with a lack of volume due to the Martin Luther King Jr. holiday, it’s not a huge surprise that we didn’t really go anywhere.
WTI Crude Oil
The West Texas Crude Oil market initially rallied during the trading session on Monday, reaching towards the $60 level before pulling back. It looks as if the 200 day EMA has offered resistance as well, but we also have the hammer from the Friday session, which has the look of a market that is trying to stabilize itself. That being the case, I would not read too much into the Monday candlestick, and recognize that if we can break above the top of that candlestick, it means that will go looking towards the top of the range. Alternately, if we break down below the hammer from the Friday session, then we will certainly be looking to go towards the $55 level.
Crude Oil Video 21.01.20
Brent markets also tried to rally initially but then gave back quite a bit of the gains. There is a hammer on Friday here as well, and that should continue to help support the market. We are hovering around the $65 level, which of course is a large, round, psychologically significant figure that people will be paying attention to. If we break above the highs from the Monday session, I believe at that point the market will probably go looking towards the $67.50 level. However, if we break down below the bottom of the hammer from the Friday session, then it’s likely that we will go looking towards the $60 level underneath. At this point, the market is very choppy but stable and therefore it looks like we may recover at first glance.
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