Crude Oil Price Forecast – Crude Oil Markets Form Bullish Candles

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially fallen during the trading session on Friday but turned around to show signs of life again. By doing so we ended up forming a massive hammer which of course is a good sign, suggesting that there are plenty of buyers looking to step in and pick this market up as it falls. By showing this, it tells us that the 200 day EMA will be tested yet again. That makes quite a bit of sense considering that the Brent market still has to play a bit of catch-up and the two markets do tend to move in the same general direction.

Crude Oil Video 13.07.20

Brent

Brent markets have also pulled back only to turn around and form a hammer as well. However, the Brent market has not filled the gap yet, so I think we have further to go in this market. That might be done due to economic conditions improving, or for that matter it might just be the US dollar losing some value. After all, the US dollar has been hammered by several currencies, so it is possible that Federal Reserve easing will continue to devalue that currency in general.

The 50 day EMA underneath is at the bottom of the gap, while the 200 day EMA is at the top, so I think it makes sense that we simply bang around in this general vicinity, perhaps with a little bit more of an upward bias than anything else.

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