Crude Oil Price Forecast – Crude Oil Markets Continue Sideways Dance

Christopher Lewis
·2-min read

WTI Crude Oil

The West Texas Crude Oil market has initially tried to rally during the trading session on Friday, only to pullback and reach towards the $40 level. The 50 day EMA is relatively flat, but it is also an area where people will pay close attention to, due to the fact that it is a popular daily trend indicator. Furthermore, the $40 level also has a certain amount of psychological importance to it as well, so I think at this point we should be looking at this as a market that is right around “fair value.” The $43.50 level above is significant resistance, just as the $36.25 level underneath has offered support. Looking at this market, this looks like a whole lot of choppy back-and-forth noise just waiting to happen.

Crude Oil Video 26.10.20

Brent

Brent markets tried to rally a bit during the trading session on Friday, but then pulled back from that 50 day EMA as well. Ultimately, I think we probably look at short-term rallies as selling opportunities, perhaps an opportunity to reach down towards the $40 level. At this point in time, if we were to break below the $40 level, it is very likely that we could go down to the $37.50 level. That is an area that was short-term support in the past, so I think it will probably open up the door towards the $35 level. If we do rally from here, I think there is going to be massive amounts of resistance at the 200 day EMA, which is closer to the $45 level. I expect choppy back-and-forth trading more than anything else though.

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This article was originally posted on FX Empire

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