Crude Oil Price Forecast – Crude Oil Markets Trying to Get to Gap

WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied a bit during the trading session on Friday, reaching towards the $40 level. However, there is still the gap to be filled at the $41 level, and therefore I think that is where we are going given enough time. However, it does not look like we have the ability to do so quite yet. Keep in mind that it was a major options expiration day though, so it is hard to tell whether or not that had a major influence. The 200 day EMA above will also offer resistance so I do not think we break above the $41 level very easily. All things being equal though, I think we are ready to fill that gap and then try to form a larger range.

Crude Oil Video 22.06.20

Brent

Brent markets rallied as well but have much further to go to fill the gap. The gap sits at the $45 level, so if I am going to trade one of these markets to the upside it is probably going to be Brent. It should be plenty of support underneath at the 50 day EMA and as we have some distance to go before we can fill the gap, I think that we may have several buying opportunities on dips, and quite frankly I think we remain positive for the short term. Once that gap gets filled, it is completely different scenario, but between now and then I am looking to buy only.

For a look at all of today’s economic events, check out our economic calendar.