Crude Oil Price Forecast explained by professional Forex trading experts the “Crude Oil Price Forecast” FX trading team.
Crude Oil Price Forecast
Crude Oil backed off of 2-year highs after alarm bells rang on Bullish fervor. Multiple signs that Crude Oil was overbought likely caused institutions to take some money off the table and wait for signs that OPEC is set to provide a landscape for Crude Oil to remain supported.
While the pace of Crude gains should slow as we near $60, Bears will likely be disappointed by trying to fight this trend that is showing the strongest internal readings since 2014. A key measure of the future spreads showed a front-month premium of the January 2018 contract compared to the February 2018 contract known as backwardation. Backwardation may cause OPEC to take a victory lap as it shows that supply is losing to demand that could see a further drawdown of global oil stockpiles that further support price. Wednesday’s EIA Crude Oil inventory report ahead of the Vienna meeting of OPEC and strategic allies on Thursday will be looked at to confirm recent bullish fundamental data.
The technical picture shows potential overheating, but there is littleargumentfor an outright short crude oil position. The price of WTI Crude oil is expected to attract buyers above $54.89 (mid-Nov. low) on dips. Initial resistance was expected at the 1.618% Fibonacci extension at 59.08, and that is where price recently paused. A resumption higher above $59.08 would target a move to $62.
WTI Crude Oil is currently trading above the 5-,8-, and 13-DMAs last week and settled on November 24 above the 200-WMA for the first time since mid-2014. A break below $54.89 would open broader concerns of a short-term top, but above this level, buying dips remains the preference.
Crude Oil Price Forecast Conclusion
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