Crude Oil Price Forecast – crude oil markets stall at resistance

WTI Crude Oil

The WTI Crude Oil market has stalled a bit during the trading session on Thursday as we run into major resistance. It looks as if the market is going to continue to struggle going forward, but I do believe that eventually we break out. We may be just a bit overextended, and the inventory numbers didn’t necessarily do a lot to instill confidence as we had a slightly larger build than anticipated. Nonetheless, markets are a forward-looking device, and I suspect that they are paying more attention to the fact that Saudi Arabia is cutting production, and of course the US dollar has been falling overall which causes bullish pressure as well.

Crude Oil Forecast Video 22.02.19

Brent

Brent markets also pulled back just slightly during the trading session as we have run into some resistance, but it’s very likely that we will continue to see buying pressure underneath. I believe the oil markets are essentially a “by on the dips” scenario, and that’s true with both grades. Given enough time, it’s very likely that crude oil will reach towards the 200 day exponential moving average, and of course the $60 level in the Brent market.

There is plenty of support underneath, so quite frankly it’s very difficult to imagine selling this market unless something hugely fundamental changes. For Brent, I believe the massive support start somewhere near the $55 level, which has previously been massive resistance. That support extends down to the $52.50 level overall to keep this market afloat. We are on the precipice of a major break out, and when it happens this market is going to soar.

Please let us know what you think in the comments below