Crude Oil Price Forecast – oil markets soft to start the week
WTI Crude Oil
WTI Crude Oil markets gapped lower initially to start out the day on Monday, drifting down towards the $60.25 level before bouncing. However, I think there is more noise to be found in this market as we are still trying to figure out what the production situation will be like coming out of OPEC and other nations. Ultimately, I do think that the buyers probably come back, because confusion means that we probably won’t have as much of an increase in output as people had hoped. The 50 EMA on the hourly chart is sloping higher, which I use as a short-term indicator quite often. Because of this, I like buying dips show signs of support, especially near the $60 handle.
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Brent
Brent markets do look a bit softer than the WTI grade, and I think at this point we are probably in a range. The $73 level underneath should be rather supportive, just as the $76 level above should be rather resistive. I think at this point, it’s likely that the market participants will continue to buy dips, especially considering that we are down 2.25% as I record this video, and still in and uptrend. I would wait for a pullback toward support on the short-term charts to get involved, but at that point I would not hesitate to start buying. If we break down below the $72.50 level, then I think we could unwind to the $70 level, which of course would probably be accompanied by selling in the WTI markets. I suspect that oil is going to be choppy for the next several days so look for value.