WTI Crude Oil Forecast: Crude Oil Approaching 50 Day EMA

Christopher Lewis

It certainly looks as if we are going to end the year on the right foot when it comes to crude oil prices and therefore the buyers will probably feel pretty good going into January.

The West Texas Intermediate Crude Oil market has initially dipped a bit during the day on Thursday, only to turn around and show signs of life again. By doing so, it appears that we are threatening the 50 day EMA just above. This of course is an important technical indicator that a lot of people pay attention to, so do not be surprised at all to see a bit of a reaction. You should also keep in mind that the Friday session is a shortened futures session due to the holiday, so therefore you need to be early to the market. Once we hit noon in New York, things will suddenly drift off.

Crude does look like it is trying to take out the 50 day EMA and whether or not it can do it on Friday is a completely different question. However, it certainly looks as if we are building up pressure to do just that. If we do take out the 50 day EMA, then my next target would be the $70.40 level, where we had sold off from previously. If we were to take out that big wipeout candle, that would of course be a very bullish turn of events for the market.

That being said, I am hesitant to put on big positions this time year anyway, and especially a market like oil which shuts down. The 200 day EMA underneath at the $69.43 level is the “floor the market” from what I see, so as long as we stay above there, I think we still have a good shot at rallying, but if we were to take that out to the downside, then I would anticipate a move down to the $65 level.

There is a lot of push and pull when it comes to the idea of demand for crude oil, as omicron variant has not been as bad as people had anticipated. With that in mind, I think people are starting to step out into the risk curve a little bit and buy oil. Ultimately, a lot of this will be settled in January, but it certainly looks as if we are going to end the year on the right foot when it comes to crude oil prices and therefore the buyers will probably feel pretty good going into January.

WTI Crude Oil

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.