Crude Oil Price Forecast – Crude oil bounces slightly on Friday

Christopher Lewis
Updated
The crude oil market bounced a bit during the day on Friday after the jobs number, which of course is very influential on what happens in financial markets. Overall, this is a market that should continue to attract a lot of attention.

WTI Crude Oil

The WTI Crude Oil market rallied a bit during the trading session on Friday, bouncing from a significant uptrend line, and the $61 level. In fact, we have the 50 day EMA right at the trend line, so a bounce isn’t a huge surprise. All things being equal though, when I look at the weekly charts I recognize that there is significant resistance at the $65 handle, and a significant support at the $60 level underneath. If we break down below the uptrend line and the $60 level, then we could unwind down to the $55 level.

Crude Oil Inventories Video 06.05.19

Brent

Brent markets also bounced significantly from a trend line, which may have just saved the uptrend. It’s a bit difficult to make that assertion yet, but obviously we have support underneath. The $75 level above is significant resistance, and therefore it’s not until we break above there that we could signal more of a “all clear” for the buyers. I think we are going to continue to see a lot of choppiness, and therefore it’s likely that the markets will offer a lot of short term back and forth trades more than anything else. However, be aware of the 50 day EMA underneath, because if it gets broken we could get a bit of a flush lower. Just as a move above the $75 level could send this market screaming to the upside. Expect a lot of volatility over the next couple of weeks as we try to determine which direction we go.

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This article was originally posted on FX Empire

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