Crude Oil Price Forecast – Crude Oil Markets Continue Same Range

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied rather significantly during the trading session again, based upon the idea of stimulus driving up demand for energy in the United States, which of course is probably a bit of a stretch. That being said, we are at the top of the range, so it is likely that we will probably eventually see sellers come back into the marketplace. The 200 day EMA sits just above, and it is likely that the market will pay attention to it. Because of this, the $41 level will be paid close attention to. Even if we do rally from here, the upside is probably somewhat limited.

Crude Oil Video 09.10.20

Brent

Brent markets also rallied a bit during the trading session on Thursday, as we have broken above the 50 day EMA. Above here, we have a lot of potential resistance all the way to at least the $45 level, so I will be looking for signs of exhaustion that I can sell. Quite frankly, any short-term shock due to stimulus being past will more than likely be sold into given enough time as it creates a liquidity event that people can dump contracts in. If we were to break above the $46 level, then it is likely that we go towards the $50 level. All things being equal, this is a market that I think continues to see a lot of volatility, but we are much closer to the short-term range top then we are the bottom, and that of course is something worth being aware of.

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