Crude Oil Price Forecast – crude oil runs into sluggish resistance

Crude oil markets went back and forth during the trading session on Friday, but we are starting to see a little bit of resistance. There are major moving averages, and of course the weekend coming out in front of the market, so is very likely that we will struggle to take off to the upside with momentum.
Christopher Lewis
Crude Oil daily chart, January 14, 2019

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.

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