Crude Oil Forecast Today 02/04: 200 Day EMA (Video)

(MENAFN- Daily Forex)

• The West Texas Intermediate or Light Sweet Crude market has seen a little bit of negativity during the trading session on Tuesday.
• And I think that does make a certain amount of sense because we have been moving on the latest tweet from the president of the United States, and he had a of days ago suggested that he was going to pile on tariffs on Russian goods and possibly oil.
• This had oil markets just rocketing to the upside.

I think we've got a situation where traders were looking for a reason to get long anyways. That being said, it looks like on Tuesday we are pulling back a little bit from the crucial 200 day EMA, which is obviously an area that people pay a lot of attention to. And therefore, I think it does make sense that if we could break above there, then it means something rather impressive. That being said, I do think that a pullback to the $70 level makes more sense than anything else, especially as Wednesday is liberation day in the United States, which means more tariffs.

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I don't really know how that plays out. have no idea what they'll be. Neither do you. Neither does most of the market. And that's why you see a little bit of hesitation with risk appetite. In fact, indices in the United States have been all over the place today as traders are probably trying to flatten out their positions. Crude oil won't be any different because the tariffs will have a direct effect on the global economy, which will have a direct effect on demand.

This time of year, it is typically somewhat bullish for crude oil. So that's why I like buying dips, especially considering that we had just tested a major three year support level, and it held. So ultimately, I think you have to assume that sooner or later the market bounces from there and rises back to higher levels like the $78.50 level, which has been important quite a few times. I remain bullish, but I want to buy oil at a cheaper price.

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