Crude Oil Price Forecast – Crude Oil Markets Pull Back From Trendline

Christopher Lewis
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WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially tried to rally during the trading session on Wednesday but gave back the gains as we got close to the downtrend line. Ultimately, this is a market that continues to see a lot of noisy behavior, especially as we are dancing around the 50 day EMA. The 50 day EMA is essentially flat, so this tells me that the market really has no clear cut direction as to where we are going next. That being said, if we can break above the downtrend line, then the market goes much higher. On the other hand, if we break down below the $67.50 level, then it is likely that we go looking towards the $65 level.

Crude Oil Video 09.09.21

Brent

Brent markets banged up against the downtrend line that we had seen forming this market for quite some time, and therefore it is likely that we continue to see this area attract a lot of attention. Nonetheless, the 50 day EMA underneath and the $70 level underneath there both offer support. If we break down below the $70 level, it is likely that we fall apart, perhaps reaching towards the 200 day EMA.

The market has been grinding lower for a while, but it is also worth noting that we recently broke back above the 50 day EMA. In other words, the market is quite choppy at this point, and now we have to make a bigger decision to get going for a longer-term move. Ultimately, I believe that this market will continue to see choppy and erratic behavior but if we do break out to the upside, we would more than likely really take off.

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This article was originally posted on FX Empire

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