Crude Oil Price Forecast
WTI Crude Oil
The West Texas Intermediate Crude Oil market has tried to bounce from the 200 day EMA, so it will be interesting to see if we can hold it. Quite frankly, a lot of the damage that we had seen on Friday was probably overdone, especially looked at through the prism of the reality that Friday does not really matter. There was a lot of panic about a variant of the coronavirus, which may actually end up being a lot less dangerous than originally thought. Because of this, most of the longer-term traders I know are taking advantage of this dip.
Crude Oil Video 30.11.21
Brent
Brent markets of course have followed the same path, bouncing from a crucial trendline and of course the crucial 200 day EMA. I do believe that it is probably only a matter of time before we break out above there, perhaps clearing the 50 day EMA. On the other hand, if we break down below the $71 level, it is possible that we could see fresh selling. At that point, the market is likely to go looking towards the $65 level.
That of course would be an extraordinarily negative turn of events, but I think at this point we are starting to see a lot of traders come in and pick this market up. After all, the world is reopening, and that will have a massive influence on what happens next. Demand for crude oil course will pick up. If that is going to be the case, and of course OPEC has no interest in increasing output, you have the possibility of a big move higher.
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This article was originally posted on FX Empire
