Crude Oil Price Forecast – crude oil runs into sluggish resistance

WTI Crude Oil

The WTI Crude Oil market went back and forth during the trading session on Friday, forming a bit of a spinning top, but quite frankly I don’t think that’s is an area that I would be concerned about, mainly because the 50 day EMA has offered resistance, but I think the $50 level underneath will be much more interesting. The 20 day EMA is just below there and turning up, so I think that pullbacks should give us an opportunity to take advantage of this break out.

Crude Oil Inventories Video 14.01.19

Brent

Brent also formed a similar candle, sitting just above the $60 handle. Beyond that, the 50 day EMA is just above and offering resistance. I think the $60 level should offer support, just as the 20 EMA underneath Will. Because of this, I like the idea of buying pullbacks as the market is trying to build up enough momentum to break out to the upside, slicing through the $65 handle. Once we clear that area, then we could go towards the $70 handle. I do believe that the bottom has been put into these crude oil markets, so I’m looking for pullbacks as a bit of value to take advantage of. I don’t have any interest in shorting oil, quite frankly it had gotten so oversold that shorting here would be simply chasing the trade and looking for more financial pain. I like the idea of the longer-term turnaround.