Crude Oil Price Forecast – Crude Oil Markets Stabilizing at 50 Day EMA

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially dropped a bit during the trading session on Tuesday, but as you can see, we continue to meander around the 50 day EMA. The 50 day EMA of course is an indicator that a lot of people pay attention to, especially in the futures market. The $70 level above is significant resistance, and therefore I think that a lot of interest will be paid to this market if we can get above there. The market breaking down below the hammer from the Monday session could open up a move down to the $65 level. Regardless, this is a market that I think continues to see a lot of noisy behavior and of course with OPEC likely to increase production, that is going to throw more volatility into this market.

Crude Oil Video 01.09.21

Brent

Brent markets have pulled back a couple of times over the last 48 hours to test the 50 day EMA, an area that of course attracts a certain amount of attention. We have broken above there, and it looks as if we are going to try to go higher, reaching towards the $75 level. On the other hand, if we were to turn around a break down below the $70 level, it would more than likely send oil much lower, perhaps reaching down towards the 200 day EMA. OPEC is front and center right now, as there are rumors and suggestions that perhaps they could production in the next few days.

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