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Crude Oil Price Forecast – Crude oil markets grind a bit higher on Monday

Christopher Lewis

WTI Crude Oil

The WTI Crude Oil market rallied a bit during the trading session on Monday, reaching towards the 50 day EMA before pulling back a bit. At this point, it’s very likely that the market is likely to continue to see plenty of selling pressure above and send this market to the downside, as things have been so negative as of late. I do believe that ultimately though we will find plenty of opportunity, simply waiting for signs of exhaustion on short-term charts. If we do break above the red 50 day EMA, then I would look to sell somewhere closer to the $57.50 level.

Brent

Brent markets rallied a bit during the trading session on Monday as well, breaking above the $59 level. However, there is a lot of resistance that extends all the way to the $60 level, so I think it’s only a matter of time before we roll over. We are starting to see a little bit of a pushback, and I think that the sellers are going to continue to jump into this market whenever they get an opportunity.

This is probably a bit of a short-term reaction due to the easing of language coming out of the United States when it comes to China but quite frankly that’s like going to be enough to save the global demand and growth situation at this point. Quite frankly, this is a short-term relief rally more than anything else that will offer another selling opportunity.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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