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Crude Oil Price Forecast – Crude oil markets have volatile day again

Christopher Lewis

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially fell during the trading session on Friday but found enough support near the psychologically $55 level to turn around and form a slightly supportive looking candle. Over the last couple of days we have seen a lot of volatility, so at this point it’s likely that the range will be very tight and choppy, so at this point in time it’s difficult to put a trade on until we break down below the $55 level which of course would be very negative or break above the $58 level which would be very positive. There is more resistance than support at the moment, but until we make that move oil continues to slam around.

Crude Oil Inventories Video 09.09.19

Brent

Brent markets also initially fell but found support underneath the $60 level. By doing so we ended up forming a hammer and therefore it shows that we are trying to go back and forth. At this point the shooting star from the previous session counteracts the bullish pressure, so essentially this means that the market has no idea what to do yet. If we break above the $62.50 level it would be an extraordinarily bullish sign, perhaps sending this market towards the 200 day EMA. Alternately, if we break down below the lows of the Friday session it’s likely we go looking towards the $57.50 level. That being said, the market is very likely to continue to be choppy and volatile, so keep that in mind.

This article was originally posted on FX Empire

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