Crude Oil Price Prediction: Volatile Movement in the Crude Oil Markets Will Continue

The price of West Texas Intermediate Crude Oil has fluctuated wildly as it appears that the $100 barrier presents major psychological resistance. The 50 Day EMA, which is just over the $105 level, must be watched if we are able to break above that level. In addition, there is a ton of supply there, plus a prior trendline that may serve as resistance. In summary, I think this market will continue to be quite agitated and competitive in both directions. You must thus use caution while choosing the size of your position.

Since Brent markets are located right below an uptrend line, they are also quite loud. A lot of people will pay close attention to that uptrend line, therefore I believe that any symptoms of exhaustion will likely be seized upon as the first ones to appear on the chart. I believe that the 50 Day EMA, which is positioned around the $108.76 level and declining, also presents a considerable amount of resistance.

As we try to decide whether or not we are going to continue to rally or if we are going to focus on the idea of a global slowdown from an economic standpoint, I believe it's only a matter of time before we pull back, perhaps just to stay in the same range that we have been in for a while. This is typical for this market. Right now, it appears that we are merely bouncing off the 200 Day EMA and may be attempting to settle into a new range.