Crude Oil Price Forecast – Crude Oil Markets Continue Negative Momentum

WTI Crude Oil

The West Texas Intermediate Crude Oil market fell during the trading session on Thursday, slicing towards the 50 day EMA. We did break down below it, but it looks as if we are trying to stabilize in that general vicinity. At this point, there are plenty of reasons to think that eventually we will turn back around but right now it looks like supply is still a major issue. Looking at the moving averages, the 50 day EMA is offering support, and the 200 day EMA underneath is also an area where there should be buyers. If we were to break down below the 200 day EMA it’s likely that we will go down towards the $55 level. In the short term a small bounce is very likely.

Crude Oil Forecast Video 10.01.20

Brent

Brent markets also have continued to show negative pressure, as we reached towards the $65 level before fighting a little bit of buying pressure. The 50 day EMA is sitting just underneath, and it looks as if it is starting to tilt higher. We have recently seen the “golden cross”, and that of course attracts a lot of attention as well. However, oversupply is still going to be a major issue, so I don’t expect some type of explosive move to the upside but that short-term bounce makes sense here as well. If we break down below the 200 day EMA it’s likely that the market goes looking towards the $62.50 level and then eventually the $60 level underneath.

Please let us know what you think in the comments below