Crude Oil Price Forecast – Crude Oil Markets Continue Choppy Behavior

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Wednesday, as we await the results of the US presidential election. At this point, it is still not confirmed that may not be for a couple of days. The candlestick for the day shows the confusion, and even though we have had a nice bounce over the last three sessions, the reality is we are starting to run out of momentum, and it now looks as if we could pull back any day now. The real tell will be what the US dollar does as it tends to move with a negative correlation.

Crude Oil Video 05.11.20

Brent

Brent markets have initially gapped higher, filled the gap and then turned around to show signs of life again. However, this is very much the same situation, as although we have had a decent bounce, the reality is that the 50 day EMA above will probably offer a certain amount of resistance, extending all the way to the 200 day EMA. Breaking back down below the $39 level opens up the possibility of a move down to the $36 level given enough time. With this, I think that we could see a bit of a “trapdoor opening”, perhaps sending the market down to the $30 level after that.

Regardless, I think this is going to be just like the WTI market, based upon the fact that there is very little demand and if we start to see the US dollar surge again, that will certainly be very negative for this market as well.

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