Crude Oil Forecast: Still Looks Somewhat Lost
Until the market breaks out of its current range, traders should assume that it will continue to move back and forth between the $72.50 and $82.50 levels for the WTI Crude Oil market and the $77.50 and $89 levels for the Brent market.
The WTI Crude Oil market experienced a bit of a rally during Thursday’s trading session but remains stuck in a range due to a lot of back-and-forth noisy behavior. The market is currently sitting just below the 50-Day EMA, which may be causing some resistance. The $82.50 level also appears to be a significant resistance barrier, and with the 200-Day EMA racing towards that area, it is likely to be even more resistant.
Significant support lies underneath at the $72.50 level, which may extend all the way down to the $70 level. However, the lack of movement in one direction or the other is a cause for concern. Traders should exercise caution and avoid putting a lot of money into this market until a clear trend emerges. Because of this, the market will probably continue to be very choppy, and therefore we need to look at this through the prism of short-term charts, perhaps looking for scalping opportunities from time to time or short-term swing trades. However, as far as a trend is concerned, we’re still a long way from seeing that in this market.
Similarly, the Brent market also rallied during the trading session and is sitting just below the 50-Day EMA.The market faces significant resistance near the $89 level, with the 200-Day EMA sitting right there as well. The $77.50 level underneath has recently offered support and may continue to do so in the future.However, concerns about demand may weigh on the market as the global economy may start shrinking, leading to lower demand for oil.
Until the market breaks out of its current range, traders should assume that it will continue to move back and forth between the $72.50 and $82.50 levels for the WTI Crude Oil market and the $77.50 and $89 levels for the Brent market. It may be wise to avoid placing larger, longer-term trades until a clear trend emerges.
Overall, the oil markets remain range-bound with significant resistance and support levels. Traders should exercise caution and focus on shorter time frames until a clear trend emerges. The lack of movement in one direction or the other is a cause for concern and suggests that traders should avoid putting a lot of money into these markets for the time being.