Crude Oil Price Forecast – Crude Oil Markets Testing 50 day EMA

WTI Crude Oil

The West Texas Intermediate Crude Oil market has fallen a bit during the course of the trading session on Wednesday to reach down towards the 50 day EMA. By doing so, we ended up going below the $80 level, which of course has a certain amount of psychological importance tied to it. Nonetheless, the 50 day EMA sits just below, and it will offer a certain amount of support in and of itself. The question now is whether or not we can bounce from here to continue going higher? If we do take out the neutral candlestick from the previous session, that would be a very bullish sign. However, there are still a lot of concern about Biden releasing the SPR, which could cause a short-term debt.

Crude Oil Video 18.11.21

Brent

Brent markets have fallen as well, and just like the WTI grade, sit on top of the 50 day EMA. The 50 day EMA attracts a lot of attention so therefore we should pay close attention to what is going on right now. As long as the 50 day EMA can hold this market up, then I think we are in good shape. Even if we do break down from here, the next support level is to be found at the $80 level, meaning that it will not be long before the buyers come back to pick up bits and pieces of value. As long as we have the reopening trade, and of course OPEC refusing to boost production, it does make a certain amount of sense that oil goes higher over the longer term.

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