- The US oil market drifted a bit lower during the trading session on Friday, losing a little over a percent almost immediately.
- That being said, the market is likely to continue to see a lot of noise near the $67 level.
- But if we break down below there, it's likely that we could drop to the $65 level.
All things being equal, this is a market that I think if you see some type of bounce, you have to look at it as a short-term buying opportunity. The 50-day EMA is near the $70 level, and that of course is an area that I think would attract a lot of attention in and of itself, just due to the fact that it is such a big round hole number.
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If we can break above there, then the crude oil market is likely to go looking to the $72.50 level above, which is a significant barrier also. If we were to break down below the $65 level, it's likely that the bottom will fall out. But as things stand right now, I think what you've got here is a market that is just simply trying to hang on to the range that it's been in for about three years.
The $65 level has been consistently important, so I like the idea of buying the pullback. Once we get a turnaround, perhaps a little bit of a balance in order to form a V on the chart, as it were. Whether or not we break out to the upside would be a completely different question, but as things stand right now, I think the market is just simply hanging around, killing time, seeing if it can find a reason to go higher. At this juncture, if you can watch the charts for short term trades, this is a market for you.
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