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Crude Oil Price Forecast – Crude oil market struggle on Monday

Christopher Lewis

WTI Crude Oil

The WTI Crude Oil market has shown itself somewhat negative during the trading session on Monday, as we initially broke above the $58 level, but gave back quite a bit of the gains. We are dancing around the 50 day EMA right now, which makes sense as a magnet for order flow. Looking at the chart, you can see that there was a major break down bar just above current levels, so the fact that we are struggling here doesn’t make much of a surprise. Ultimately, I do think that the market is trying to get somewhat bullish but part of that is due to the US/Iran tensions. If those dissipate, that could send markets lower. At this point, I think we need to see an impulsive candle in one direction or the other to place money on the table.

Crude Oil Video 25.06.19

Brent

Brent markets are also struggling at the 50 day EMA, using the $66 level as massive resistance. I think a pullback makes sense but there’s obviously been a very bullish turn around in this market as of late. That being the case, I think that a pullback will probably be a buying opportunity but keep in mind that there are a lot of moving pieces of the puzzle right now. If we can get the US/China trade negotiations moving in the right direction that could also boost the value of oil.

Beyond that, pay attention to the US dollar, because if it continues to fall in strength that could also create a bit of a boost for commodities in general, with oil being no different.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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