Crude Oil Price Forecast – Crude Oil Markets Sluggish on Monday

WTI Crude Oil

The West Texas Intermediate Crude Oil market gapped lower to kick off the trading week on Monday, but then turned back around to show signs of strength as we filled the gap. That being said, I think it is only a matter of time before we go back and forth, and as a result it is likely that we are going to see this market trade between the $55 level on the top, and the $50 level on the bottom. Looking at the 50 day EMA, we are looking at a market that is trying to see this indicator catch up an offer support. However, pay attention to whether or not there is enough demand, because quite frankly there has not been for a long time. Yes, I realize there stimulus out there, but the question then remains whether or not it will actually drive prices higher?

Crude Oil Video 19.01.21

Brent

Brent markets have gapped lower to show signs of weakness off the bat as well, but then turned around to fill the gap. The $55 level is an area that is “fair value” between the two major areas of support and resistance. It is worth noting that the 50 day EMA is breaking just above the $50 level, so I think that adds even more credence to the idea of buyers being down there. All things being equal, I think this is a market that probably needs to drift a little bit lower as it got ahead of itself in the short term. I think at this point in time it is more than likely going to find plenty of buyers underneath we just simply have gotten a bit stretched.

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