Crude Oil Price Forecast – Crude Oil Reaches Towards Major Figure

The WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied towards the $50 level on Friday, an area that of course will attract a certain amount of attention due to the fact that it is a large, round, psychologically significant figure. The market has closed towards the top of the range, ending into the Christmas week on a very strong foot. That being said though, there will be little in the way of volume next week, and that could cause some issues. A pullback would make a certain amount of sense but that does not necessarily mean that I would be a seller. It looks as if traders are trying to “front run Congress” as they look likely to ink a deal over the weekend for stimulus.

Crude Oil Video 21.12.20

Brent

Brent markets also rallied during the trading session, closing towards the very highest in a bid to show signs of strength again. Ultimately, the $50 level underneath is a major support level, as it was a major resistance barrier. I think that we probably go looking towards the $55 level given enough time, and with stimulus almost a certainty at this point in time it does make sense. Pay close attention to the US Dollar Index because it will certainly have its say in this market as well, as it tends to be negatively correlated over the longer term. At this point, I believe that you continue to buy dips, at least until otherwise proven wrong. I do not like shorting this market, but I do think that eventually the reality of a low demand environment catches up to it. That is probably a story for January.

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