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Crude Oil Price Forecast – Crude Oil Markets Stall At Highs

Christopher Lewis

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Friday as we continue to have around the $61.50 level. We are getting close to the top of the overall consolidation area though, reaching towards the $62.50 level. If we can break above there, then it’s likely that the market will go looking towards the $65 level as well. Ultimately, I believe that this market is probably going to be very difficult to trade over the next couple of days, because quite frankly there are major barriers but a lack of trading between now and when volume picks back up, somewhere around the January 6 timeframe.

Crude Oil Inventories Video 30.12.19

Brent

Brent markets also look very similar, as they are close to the $67.50 level, an area that of course will cause a certain amount of resistance based upon previous action. That being said though, if we can break above that level then it’s likely that we will go looking towards the $70 level next. Short-term pullback should see plenty of support near the $65 level, as we are about to get the “golden cross”, when the 50 day EMA crosses above the 200 day EMA. That being said though, there are a lot of moving pieces out there as far as crude oil is concerned, not the least of which will be the US/China trade situation and whether or not demand will pick up as a result. If there is any type of break down in that situation, crude oil be extraordinarily vulnerable at that point.

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This article was originally posted on FX Empire

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