Crude Oil Price Forecast – Crude Oil Markets Volatile To Kickoff Week

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially tried to rally during the trading session on Tuesday but found the area just below the $60 level to be too much. We then broke down towards the 200 day EMA, and then bounced right back above it. This is an extraordinarily volatile candlestick, and it shows that the market is trying to figure out where to go next. I would hesitate to put money to work in this market until we can break above $60, or below $57.50 on a daily close. At that point, it’s very likely that it shows where the next $2.50 will be coming from, either the upper or downside.

Oil Forecast Video 22.01.20

Brent

Brent markets also had a very wild ride during the trading session and tested the 200 day EMA. They did not break through it, and then they turned around to form a bit of a hammer. If we can break above the top of the range for the Tuesday session, then it’s likely that we go looking towards the $67.50 level. Otherwise, if we break down below the 200 day EMA it’s very likely that the $62.50 level will be targeted initially, followed by the $60 level given enough time. Now that we have more volume in the market is likely that traders will make more of a longer-term decision, and it’s clear that there is a huge fight going on in the oil pits right now. Get out of the way, and simply react to whoever wins this argument, right now is not the time to be risking a lot of money in this market.

Please let us know what you think in the comments below