Crude Oil Price Forecast – Crude Oil Markets Attempt to Stabilize
WTI Crude Oil
The West Texas Intermediate Crude Oil market has fallen a bit during the course of trading on Monday, as it looks like we are testing the $65 level again. The $65 level has been supportive multiple times, but it should be noted that you could make an argument for a descending triangle. At this point, the clearest trade that I see would be a potential move below that level, because if we break down below the support then we probably go looking towards the 200 day EMA. However, if we were to turn around and rally a bit, we could go looking towards the 50 day EMA, which is closer to the $70 handle. All things being equal, I believe that you should keep your position size relatively small until proven correct.
Crude Oil Video 17.08.21
Brent
Brent markets have fallen towards the same support level yet again, with the $67.50 level offering support yet again. We are looking at a descending triangle here as well, so if we break down through that level that I think it opens up a move down to the $65 level. The 200 day EMA is also reaching towards that level, which could offer a significant amount of support as well. Furthermore, pay close attention to the US dollar, due to the fact that the contract is of course priced in those very same greenbacks. If we break above the $70 level, then it is likely we could go looking towards the 50 day EMA above, sitting just below the $72 level. We are being squeezed in a relatively tight range, which is probably what we can expect going forward.
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