Crude Oil Price Forecast – Crude Oil Markets Find Buyers Underneath

Christopher Lewis
2 min read
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WTI Crude Oil

The West Texas Intermediate Crude Oil market initially fell during the course of the trading session on Wednesday, only to turn around and form a very bullish candlestick. There was a build of crude oil according to the inventory numbers coming out of America, which of course was a very negative for the market. That being said, buyers returned to turn things right back around and reach above the $62 level. The candlestick does look very bullish, and therefore I think we will get a bit of a recovery going forward. To the upside, the $65 level is a barrier that I think will be very difficult to get above.

Crude Oil Video 22.04.21

Brent

Brent markets initially fell during the session as well, dropping down towards the $65 level before turning around to form a bullish candlestick. At this point, the market is likely to go looking towards the $60 level initially, possibly even to the $70 level. At this point in time, the market is likely to continue to try to break to the upside, perhaps based upon the idea of the recovery rally more than anything else. I have no interest in shorting this market, at least not until we break down below the 50 day EMA. Because of this, I think that there will be plenty of buyers underneath and therefore it is only a matter of time before we at least make a push towards the $70 level. If the US dollar continues to fall, then that could also help the crude oil markets rally from a simple currency devaluation standpoint.

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

This article was originally posted on FX Empire

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