Crude Oil Price Forecast – Crude Oil Markets Continue to Grind Higher

WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied a bit during the trading session again on Tuesday as we continue to try and fill the gap above. Ultimately, the market is likely to see a lot of back-and-forth choppiness, but eventually buyers will probably come into the market to take advantage of this technical trade. The $34 level underneath should be supportive, and most certainly the $30 level will be as the 50 day EMA comes into the picture. Whether or not the market can break above the 200 day EMA is a completely different question, and quite frankly one that I think the answer to is “no”.

Crude Oil Video 03.06.20

Brent

Brent markets are reaching towards the $40 level during the trading session on Tuesday, as we are continuing to see the market try to break into the gap and fill it. If we can get above the $40 level, it is highly likely that Brent will continue to see buyers jump in to fill that gap based upon a technical trade. All things being equal though, the question is whether or not we have enough demand to actually sustain this?

I do not think we do but still get filled and I think a lot of traders are banking on that particular aspect of the market right now. This is purely a technical trade, and it should be noted that the 200 day EMA is sitting just above the gap in the Brent markets, which of course makes quite a bit of sense as it should be a rather nasty barrier.

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This article was originally posted on FX Empire

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