Crude Oil Price Forecast – Crude Oil Markets Continue to Look Confused

WTI Crude Oil

The West Texas Intermediate Crude Oil market went back and forth during the trading session on Thursday, as we await the jobs number on Friday. Quite frankly though, I think that rallies at this point are still to be sold, as the $50 level above is a significant level of resistance from what I see. It was previous support, and therefore market memory should continue to dictate that it will cause a reaction. Furthermore, it is also a large, round, psychologically significant figure. With that in mind I like the idea of shorting this market on rallies.

Crude Oil Video 06.03.20

Brent

Brent markets went back and forth during the trading session on Thursday as well, using the $50 level as a bit of support. That being said though, if the markets get even more noise during the jobs announcement, they may roll over again. The $55 level above could offer significant resistance as it is a large, round number, and the 50 day EMA is currently racing towards it. Because of this, the market will probably find a lot of issues in that area.

To the downside, the $50 level under should offer a bit of support, but at this point I think we could drop even further to the $45 level. Breaking that would be a very negative sign, and something that could lead to disastrous moves in this market. The market will continue to be noisy, but until we get stabilization in the world markets, this grade of oil will suffer right along with WTI.