Crude Oil Price Forecast – crude oil markets testing resistance

WTI Crude Oil

The WTI Crude Oil market rallied on Friday, testing the $57.50 level. Ultimately, there is a bit of resistance above extending to the $58 level, so if we can break that level, then we should continue to go higher, perhaps reaching towards the $60 handle. Short-term pullbacks should be buying opportunities, and therefore I think that buying opportunities will present themselves closer to the $55 level if we get that pullback.

Crude Oil Inventories Video 25.02.19

Brent

Brent markets rallied initially during the trading session as well but are struggling right at the 200 day EMA. The 50% Fibonacci retracement level is just above, and that should cause a significant amount of resistance. In general, the market is bullish but I think a pullback makes a lot of sense here. The 50 day EMA is starting to curl to the upside, so we may pull back towards that area to find buyers. Otherwise, if we can break above the 50% Fibonacci retracement level at roughly $68.20, then the market probably runs towards the $70 level above.

Expect volatility, but quite frankly it looks as if the crude oil markets will continue to be extraordinarily choppy, but it’s obvious we have a bit of a bid underneath. Pay attention to global growth stories, especially the US/China trading negotiations, because that could drive the idea of demand for petroleum going forward. Expect fireworks soon, but in the meantime it looks like we need to grind it out to build up momentum.

Please let us know what you think in the comments below