Crude Oil Price Forecast – Crude Oil Shows Buying Pressure Underneath

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially pulled back during the trading session on Wednesday to show more support yet again as we bounce. Ultimately, this is a market that I think continues to go towards the $50 level above, which is a large, round, psychologically significant figure and an area that has offered resistance recently. The pullback has been thought of as a buying opportunity, judging by the price action that we have seen. Furthermore, the US dollar has fallen so that of course helps this market as well. I think we are going to revisit the $50 level sooner rather than later.

Crude Oil Video 24.12.20

Brent

Brent markets have also pulled back to pierce the $50 level, but then found buyers to bounce above it again. It looks as if the $50 level will continue to be important for the markets, as it was previous resistance and should now be significant support. Ultimately, the market bouncing from here should send oil towards the $52.50 level, possibly even the $55 level given enough time. At this point, it is likely that the uptrend should continue to go higher, but I also recognize that it is going to be noisy to say the least.

To the downside, the market could go looking towards the 50 day EMA, but at this point I do think that we continue to find plenty of reasons to buy crude oil, if for no other reason than the fact that the US dollar continues to fall. Stimulus around the world could also drive up the demand for crude oil as well.

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