Crude Oil Price Forecast – Crude Oil Markets Continue Bullish BehaviorThe crude oil markets rallied again on Wednesday, as we head into the Thanksgiving Day holiday. That being said, liquidity is about to drop off the cliff.
WTI Crude Oil
The West Texas Intermediate Crude Oil market rallied a bit during the trading session on Wednesday, but in relation to what it did on Tuesday, it was a rather quiet session. It does make sense that perhaps we continue to grind higher due to the fact that a lot of people are looking for ways to get away from fiat currency right now and play the possibility of a synchronize global recovery due to the vaccine. I think we are jumping the gun here, but at the end of the day momentum is running the market higher. With this, I believe that short-term dips will probably offer buying opportunities, lease for the next several sessions.
Crude Oil Video 26.11.20
Brent Crude Oil
As you would expect, Brent markets are behaving very much the same, but might be a little more stretched than the WTI grade of crude oil. One would anticipate that the $47.50 level underneath could be supportive based upon shorter-term charts and therefore I do believe that it is only a matter of time before pullbacks get bought into, despite the fact that demand for crude oil remains weak. People are starting to price and what is going on next year, which is the very definition of a market that is way ahead of itself. Having said that, sometimes you cannot fight the lack of common sense. You have two options here: you can either become “right”, or you can make money.
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It is obvious that momentum has taken over the market and therefore supply and demand will not matter, lease for the short term. With this, a buy on the dips mentality remains intact.
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