Crude Oil Price Forecast – Crude Oil Has Rough Ride on Thursday

WTI Crude Oil

The West Texas Intermediate Crude Oil market fell significantly during the trading session on Thursday, breaking below the $40 level before the inventory announcement, as the US dollar had strengthened. At this point, I think it is only a matter of time before we break down a bit though, due to the fact that the markets are struggling with the idea of growth or whether or not we are going to move forward or backwards when it comes to that.

The 50 day EMA did offer a little bit of support during the trading session, so it is not a huge surprise that we have bounced back above it. However, the market continues to see a lot of volatility and I think at this point it is difficult to imagine that the market is going to be simply jumping higher due to the fact that there is not going to be enough economic activity out there to push demand higher. In fact, I look at any rally as a potential short-term selling opportunity.

Crude Oil Video 16.10.20

Brent

Brent of course followed the same path, before bouncing a bit during the trading session. The $42 level has been recaptured but I think it is only a matter of time before sellers would come back into this market, and therefore I am looking for short-term signs of exhaustion to start selling Brent yet again, as I believe we are likely to see the $40 level be tested yet again. If we can break down below there then the $39 level happens, followed by a more significant break down. The 200 day EMA above is flat and should offer a significant amount of resistance.

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