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Crude Oil Price Forecast – Crude Oil Markets Hugging 200 Day EMA

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WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially fallen during the day on Friday but found enough support at the 200 day EMA to turn around and form a bit of a hammer shaped candlestick. This does not necessarily signified me that we are going to go a lot higher, but rather we are not quite ready to break down either. I look at this candlestick, it essentially encompasses most of the recent consolidation, and I think that is what we are going to see heading into the new year, consolidation.

The market participants will probably be focusing more on holidays than crude oil, but it should be noted that the crude oil market is going to be one area of extreme volatility as the OVX continues to show us. With this being the case, I think a short-term sideways choppy range bound type of market structures which you will be looking at.

Crude Oil Video 20.12.21

Brent

Brent markets have also pulled back towards the 200 day EMA but just like its cousin, rallied a bit to show signs of life. The 200 day EMA currently sits at the $72 level, so I think there is a lot of psychological support built into it. To the upside, the $75 level should offer resistance, just as the $77 level will. In general, I think the market continues to be very noisy and agitated, but that probably has a lot to do with it being the end of the year and that liquidity probably is going to be a major factor. Furthermore, omicron shutdowns are also something that people are worried about.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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