Crude Oil Price Forecast – Crude Oil Markets Stay In Range

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied during the trading session on Thursday, bouncing from the 200 day EMA. However, there is significant resistance just above and we did in fact formed a bit of a shooting star from the previous session. This suggests that perhaps we are looking at the possibility of a pullback from here, and that could continue the overall consolidation. To the upside, the $43.50 level is significant resistance, just as the $36.25 level underneath is massive support. At this point, the 50 and the 200 day EMA indicators both are flat, so that does suggest that we are still looking for real momentum.

Crude Oil Video 13.11.20

Brent

Brent markets of course look very much the same, testing the 200 day EMA from the undersigned, but I think it is only a matter of time before we see some type of selling pressure entering the market as well, but currently I believe we are just trying to figure out what to do next. Yes, there is a potential vaccine coming, but there is still a massive oversupply of crude oil out there and it looks like economies are going to be locking back down. With this being the case, I do believe that this market will eventually roll over, reaching back down towards the bottom of the range. That being said, if we were to break above the $46.50 level, then you would have to think about the upside, but that is not my base case scenario right now.

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