Crude Oil Price Forecast – Crude Oil Markets Blast Higher

WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied significantly during the session on Monday, as we are gaining more “risk on” when it comes to the markets based upon the latest headlines involving the health of Donald Trump. It is a strange correlation, but people are also betting on the idea that there might be stimulus, thereby driving up demand for crude oil. Here is the catch: stimulus will not drive up demand enough to wipe out supply. Any spike at this point should be thought of as short-term, and therefore I think we have a nice selling opportunity above.

I like the idea of fading short-term rallies, especially if we can get somewhere near the $40 level. As far as buying is concerned, things would have to change drastically, perhaps something like the US dollar falling apart to get me to do that.

Crude Oil Video 06.10.20

Brent

Brent markets have rallied rather significantly during the trading session as well, but again I see plenty of resistance above particularly interested in shorting near the $42.75 level, and then again at the $45 level. I am not willing to short right away, and I do recognize that we probably have some “wood to chop” in the meantime as the market try to figure out what to do next. All things being equal though, we have seen a “lower low” recently, so we still have bearish signals on the chart, although the Monday session would have you believe otherwise. This will more than likely end up being a nice selling opportunity if you are patient enough and look to short-term charts.

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