Crude Oil Price Forecast – Crude Oil Markets Bounce To Kickoff Week

WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied a bit during the trading session on Monday, as the market had been oversold. That being the case, it makes quite a bit of sense that the market bounced a bit, perhaps based upon the idea of the Federal Reserve cutting rates. That being said though, it just simply a matter of the market being overdone. Rallies at this point should be selling opportunities, as the markets have gotten ahead of themselves. Nonetheless, I do like the idea of fading rallies, especially if we get somewhere near the $50 level which should be a significant amount of resistance.

Crude Oil Video 03.03.20

Brent

Brent markets rallied a bit during the trading session but gave back quite a bit of the gains to show signs of exhaustion. The Brent market is much more sensitive to the global market than the WTI grade, so it makes quite a bit of sense that the market pays so much attention to the negativity around the world. I do believe that it is only a matter of time before we rollover yet again. If the market breaks down below the $50 level, then it’s very likely to go looking towards the $45 level. Quite frankly, I don’t see enough in the way of demand out there to justify anything along the lines of a bullish run. I also recognize that the $55 level above should be significant resistance, so don’t be surprised at all to see sellers come in heavily at that area. It’s not until we break above the 50 day EMA until I would be a buyer.