Crude Oil Price Forecast – Crude oil markets continue lull

WTI Crude Oil

The West Texas Intermediate crude oil market fell again during trading on Thursday, as we continue to see a general slowdown in global growth. We haven’t quite completely 100% filled the gap so I suppose this move wasn’t exactly without merit, but at the end of the day it doesn’t look like the markets are quite ready to go anywhere. The $55 level should offer a certain amount of support, and as a result it’s very likely that we could get a small bounce, but I’m not looking for this market to go anywhere in the meantime. Short-term back and forth scalping is probably about as good as this gets.

Brent

Brent markets initially fell during the trading session but then showed signs of resiliency to form a hammer for the second day in a row. This is a good sign, but quite frankly I’m not looking for anything major to happen here, I think that we will simply bounce towards the top of the last couple of days and then roll over again. The market simply don’t know what to do with themselves right now, so it makes sense that we will struggle for a little bit of clarity. With that, I am a short-term trader at best, recognizing that we will simply go back and forth over the course of a few dollars. If we were to break down below the $60 level though, that could lead to something bigger. Recapturing the 200 day EMA above could also do the same in the opposite direction.

Please let us know what you think in the comments below