Crude Oil Price Forecast – Crude Oil Markets Bounce From Support
WTI Crude Oil
The West Texas Intermediate Crude Oil markets have bounced a bit during the trading session on Tuesday, as there is talk of OPEC perhaps cutting production even further, which could lift the markets a bit. That being said though, there is significant support in this area anyway, as I had been talking about. I suggested that the $52.50 level would be support all the way down to the $50 level, and so far, it looks as if it is trying to hold. We could bounce towards the 50 day EMA above, but I think in the short term you are probably looking at a move towards the $55 level at best. If we break above there, then we have to reevaluate the entire situation. Nonetheless, the market is oversold so a technical bounce is probably going to be necessary.
Oil Forecast Video 29.01.20
Brent
Brent markets also have tried to bounce a bit during the trading session but were a little bit less resilient than the WTI market. After all, the $60 level above caused a bit of resistance, so it makes quite a bit of sense that the market would pull back from there, not just because of the large, round, psychologically significant number though, but also the fact that Brent will be influenced more by what goes on in the Middle East than the WTI markets. With this, the market looks very likely to continue to see a lot of support underneath, starting in this general vicinity but I think it really comes into play at the $57.50 level. However, if we were to break above the $60 level, then it’s likely that the market could then go to the $62.50 level.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
