Crude Oil Price Forecast – Crude Oil Continues to Look Vulnerable

WTI Crude Oil

The West Texas Intermediate Crude Oil market has dropped a bit during the trading session on Friday, dipping below the 200 day EMA. As we approach the $40 level, traders will begin to look at that large figure as a potential support barrier, but at the end of the day we are still stuck in the same range we have been in for some time. Because of this, I am not looking for any type of bounce from here, and quite frankly if we do bounce from here, I think it is only a matter of time before we sell off again. I do believe that we continue to see negativity, at least in the short term to reach towards the bottom of the range that is marked on the chart.

Crude Oil Video 16.11.20

Brent

Brent markets also look a bit vulnerable as we had a slightly negative trading session. That being said, the market is likely to continue to go looking towards the 50 day EMA, perhaps even lower than that. The demand for crude oil simply is not going to be there and we had a less than bullish inventory figure came out on Thursday to drive that point home. As it looks like we are going to continue to see a lack of demand due to economy shutting down, it makes quite a bit of sense that the crude oil markets continue to go lower. I fade rallies, and I do believe that we go looking for the short-term charts for signs of exhaustion that we can take advantage of. At this point in time, I have no interest in buying crude oil whatsoever.

For a look at all of today’s economic events, check out our economic calendar.