Crude Oil Price Prediction – Crude Oil Markets Continue to Respect the 200-Day Exponential Moving Average

The crude oil markets have retreated somewhat during Thursday’s trading session, indicating hesitancy around resistance.

The West Texas Intermediate Crude Oil market retreated slightly during Thursday’s trading session as the 200-day exponential moving average provided resistance. The market is also paying close attention to the $95 level, so it’s not a major surprise that we pulled back little at this time. Despite this, the market is likely to continue to see a great deal of noise given there are numerous concurrent currents.

If we are able to break over the 50-day exponential moving average, a significantly greater price move is possible. The $100 mark would be the next objective. More likely than not, the noise in the market will cause a slight downturn.

Brent markets have also retreated, but it has already reached the 50-day exponential moving average (EMA). The market continues to exhibit some hesitancy, and honestly, I believe a general correction is imminent. The oil markets must account for the possibility that Iran would add more oil to the mix, while Saudi Arabia may reduce its output marginally. Ultimately, I believe this market should also be concerned about the likelihood of worldwide expansion. In spite of this, it is likely that we will continue to experience a great deal of volatility. We are somewhat overextended, so a pullback makes a lot of sense. I do not believe, however, that we will necessarily break down; this is more or less just a short-term retracement.

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