Crude Oil Price Forecast – Crude Oil Markets Drifting Sideways Still

WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied initially during the trading session on Friday but continues to find resistance just above. Because of this, it looks like we are running out of steam and are either going to grind sideways to work off some of the gains or wait to see what happens with stimulus as that is one of the big drivers of oil prices right now. We are currently in the middle of the overall five dollar range between the $50 level on the bottom, and the $55 level on the top. With that in mind, I am very hesitant to put a lot of money to work as I think this is more or less a short-term back-and-forth type of opportunity for day trading.

Crude Oil Video 01.02.21

Brent

Brent markets are hanging on to the $55 level during trading on Friday, after initially trying to rally. It looks as if the $56 level is a bit too much for the market overcome, so I think we are more likely than not to drift a little bit lower. The 50 day EMA is currently just below the $52 level, so I think that might be where we end up before it is all said and done. I do believe that short-term rallies are to be sold into for what we have seen lately, and therefore there is no reason to get overly excited about any type of move to the upside until it clears above the $56 level on a daily close. Because of this, I am looking for short-term selling opportunities on short-term charts. Beyond that I do not really have much of an opinion.

For a look at all of today’s economic events, check out our economic calendar.