Crude Oil Price Forecast – Crude Oil Markets Continue to Do NothingCrude oil markets have dipped slightly to kick off the trading session on Wednesday but turned around to recover slightly as well.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has shown itself to be stagnant yet again during the trading session on Wednesday as we await some type of catalyst. We do get the jobs number in the United States at the end of the week, so perhaps that could do something but right now it looks as if we are simply dancing around the $40 level yet again. Yes, we will eventually move, but right now I just do not see how that happens anytime soon. That being the case, I think unless you have the ability to trade shorter-term charts there will not be much to do here.
Crude Oil Video 01.10.20
Brent markets of course look very much the same, and you are simply waiting for some type of significant move. At this point, I cannot remember a time in the last 15 years that crude oil markets have done this little for this long. This is a market that I think quite simply is looking for some reason to go in one direction or the other. I would anticipate lower is probably the more likely outcome from the longer-term perspective, as there is a serious lack of demand out there and we are starting to see countries like Russia and Iraq step away from the idea of cutting production. Furthermore, if we get any strengthen on the US dollar that will work against the value of crude oil and commodities in general. Because of this, I like the idea of selling rallies that show signs of exhaustion above, especially near the 50 day EMA and perhaps even at the 200 day EMA.
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