Crude Oil Price Forecast – Crude oil markets stage Friday rally

WTI Crude Oil

The WTI Crude Oil market rallied rather significantly during the day on Friday, reaching towards the $55 level before pulling back slightly. It makes sense that the $55 level could cause some issues, because quite frankly we have seen so much in the way of volatility in this market, so you can’t expect it to go straight up in the air. Beyond that, it was the scene of major support previously so it should be major resistance now. I’m willing to fade signs of exhaustion on short-term charts but recognize that if we break above the $56 level, then the market probably goes looking towards the 50 day EMA which is pictured in red on the chart.

Crude Oil Inventories Video 12.08.19

Brent

Brent markets also rallied during the trading session to reach towards the $57 level. That is an area that begins the support barrier that was just broken that extends all the way to the $60 level. Now that support has been broken below, it should offer resistance. I’m looking to sell Brent on signs of exhaustion, recognizing that we may have to wait until midday Monday before the market exhausts itself. That being said I believe that the market is going to go looking towards the $56 level again, but it may take some time to get there. I like fading short-term rallies and have no interest in buying this market. I believe that the $60 level will be difficult to overcome, and if we can get above there the 50 day EMA coinciding nicely with the $62.50 level makes quite a bit of sense.

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