Crude Oil Price Forecast – Crude Oil Has Another Strong ShowingCrude oil markets continue to celebrate the idea of a potential vaccine coming out and making everything back to normal again.
WTI Crude Oil
The crude oil markets have rallied again during the trading session on Tuesday, as we continue to celebrate the idea of a vaccine. That being said, we are way ahead of ourselves as we are months away from this vaccine being released, and of course we still have the massive headwind of oversupply. By the time this is all said and done, I suspect that the sellers are going to come back in. In fact, it is not until we break above the $43.50 level that I would be convinced of a big move to the upside, and I believe there is plenty of room between here and there to see signs of exhaustion that you can fade.
Crude Oil Video 11.11.20
Brent markets also rallied as one would expect, reaching towards the top of the range from the previous session. Ultimately, this is a market that continues to see a lot of choppiness and volatility, so I think we are looking at a scenario where we are likely to see a “fade the rally” type of situation. The 200 day EMA above at the $43.33 level should also offer resistance. Signs of exhaustion should be sold into, but I think that the traders out there should be very cautious, because markets do tend to get a little over excited at points in time. I think we are seeing that right now, but ultimately, I believe that the oversupply of crude oil will continue to be a major problem. With this, I am very skeptical of what we are seeing over the last 48 hours.
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