Crude Oil Price Forecast – Crude oil markets bounced slightly on Wednesday

WTI Crude Oil

The WTI Crude Oil markets initially tried to drop after gapping higher on Wednesday in reaction to the extraordinarily bearish candle stick that formed on Tuesday. That being said, the candle stick on Tuesday was extraordinarily negative, and I do think that at this point we need to be looking for short-term selling opportunities near the 50 day EMA. The $57.50 level is an area that I think will cause some resistance, so any signs of exhaustion on a short-term chart in that area could be construed as an opportunity to short and go looking towards the $55 level. Alternately, if we were to break above the $57.50 level, then we could go looking towards the 200 day EMA at $59. One thing is for sure, global demand is not helping the situation so as long as the Americans and the Iranians don’t ratchet up tension, we should continue to see this market cool off a bit.

Crude Oil Price Forecast Video 04.07.19

Brent

Brent markets initially gapped as well, turned around to find support and then bounced quite significantly. At this point, the market looks as if it is ready to try to rally a bit but I do think that the resistance above is going to be somewhat extreme. The $65 level is as high as we can get, a lease without some type of catalyst to go higher. I believe that the bottom of the range for the trading session on Wednesday is an area that being broken to the downside could unleash this market down to the $60 level. Overall, this is probably going to follow right along with WTI as per usual so watch both markets, and trade accordingly as they are indicators of each other.

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