Crude Oil Price Forecast – Crude Oil Markets Pull Back to Kickoff Tuesday Session

WTI Crude Oil

The West Texas Intermediate Crude Oil market has fallen a bit during the trading session on Tuesday, as we continue to see a lot of hesitation around the 50 day EMA, but perhaps more importantly the downtrend line that forms on the chart. If we can break above the $70 level, we would not only clear a large, round, psychologically significant figure, but we would also see the downtrend line in the rearview mirror, suggesting that we could go much higher.

On the other hand, if we break down below the $67.50 level, then I think we rollover as this will be yet another failed attempt to rally. It will be interesting to see how this plays out, because this is a direct reflection of what people think about the overall economic situation.

Crude Oil Video 08.09.21

Brent

Brent markets have pulled back significantly from the uptrend line, reaching down towards the 50 day EMA. The $70 level underneath should be rather supportive, just as the shooting star above offers a significant amount of resistance. Quite frankly, in the middle of all of this I think you are looking at choppy and nonsensical trading. If we break the top of that shooting star from the Monday session, then I might be willing to go long, but a break down below the $70 level would have me short of this market. Obviously, the US dollar could have a certain amount of influence as well, and as always, the two markets will move in the same direction over the longer term. If one of them breaks out, the other one follow suit.

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