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Crude Oil Price Forecast – crude oil pulls back

Christopher Lewis

WTI Crude Oil

The WTI Crude Oil market fell a bit during the trading session on Monday, slicing through the $52 level again. We continue to see a lot of volatility in this market, so it shouldn’t be that surprising that we can’t take off to the upside. However, I don’t think that the market is going to break down below the $50 level in the short term. I think overall we are looking at a scenario that suggest we could get a lot of choppiness and sideways trading. We need to worry about global demand, but at the same time supply could be tightening up in the future. With all of these things happening at the same time, it’s very likely that the market will continue to go back and forth in this somewhat clueless direction.

Brent

Brent markets fell during the trading session as well, and remain well within the trading range that we have been in. I think at this point, it’s very likely that we will continue to see buyers underneath, but there is obviously a neck line above that continues to cause a lot of resistance. With that being the case, if we can break above the top of the candle stick from the Friday session, that would be a very bullish sign. Overall, the $60 level underneath should offer a lot of support, as well as the wicks from last week’s candles. At this point, I believe that we are still looking for direction in this market just as we are the WTI market.

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This article was originally posted on FX Empire

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