Crude Oil Price Forecast – Crude Oil Markets Continue RecoveringCrude oil markets have dipped on Thursday but have recovered slightly during the day as we continue to try to recover from the big break down previously.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has rallied a bit during the trading session after initially dropping. The market looks as if it is trying to test the 200 day EMA, so that of course is a very interesting technical indicator to see where we may be going next. I think at this point, you should be on guard for signs of exhaustion, as the recent move lower clearly pointed out that there were cracks in the ice when it came to crude oil markets. That being said, you may see that show itself up on short-term charts more than anything else. I am not willing to start buying yet, so at this point I am still looking for signs of weakness, especially if the US dollar starts to pick up strength.
Crude Oil Video 18.09.20
Brent markets have also rallied in the same way that the WTI market has. Ultimately, we are testing the 50 day EMA for resistance, but could break above there to go looking towards the 200 day EMA. Recently, we have seen a significant break down here as well, so I think it is very likely that there still are sellers above looking to get involved. Ultimately, it looks as if the $40 level has offered significant support, so if we were to turn around a break down below there, the market is likely to go dropping another $2.50, possibly even $5.00 after that. The US dollar has a major influence on commodities as well, so pay attention to whether or not it starts to strengthen, as it has a negative influence on this market.
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