Crude Oil Price Forecast – Crude Oil Markets Still Noisy

WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied a bit during the trading session initially on Tuesday but gave back quite a bit of the gains as Jerome Powell got front of Congress and started chirping. At this point, the US dollar spiked, and this brought down the value of crude oil. Having said that, we are still very much in a trading range so it makes sense that we would see a lot of back and forth. I believe that the $35 level underneath will continue to be supportive, so that of course is something that should be paid attention to. We are still not filled the gap completely, which would need a move towards the $41 level I think eventually we get there.

Crude Oil Video 17.06.20

Brent

Brent markets have initially rallied during the trading session as well, breaking above the $40 level but have given back quite a bit of the gains. Nonetheless, I think there is plenty of support underneath at the 50 day EMA, right around the $36 level. At this point, the market is likely to continue grinding higher in order to fill that gap at the $45 level. I think if we do turn around a break down below the 50 day EMA then we will more than likely go looking towards the $35 handle, followed by the $30 level. I do not believe that this is a market that should be sold quite yet, and I think pullbacks will probably end up being a buying opportunity as we have seen so much in the way of bullish pressure as of late. In fact, you could make a little bit of an argument for a bullish flag.

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