Crude Oil Price Forecast – Crude Oil Markets Continue to RallyCrude oil markets have rallied again on Tuesday, as we continue to see a lot of volatility. We are moving on hope and hope is something that should be faded.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Tuesday, as traders are still in the idea of some type of quick election result. At this point, the reality is that the market is still going to struggle with the idea of a lack of demand, and quite frankly the stimulus will not be much of a help either. How I know this? The last three stimulus packages did not help. Demand for crude oil is weak for a reason, and with economies around the world locking themselves down it is foolish to think that that suddenly going to pick up. I do believe in fading this market near the 50 day EMA, perhaps the $40 level.
Crude Oil Video 04.11.20
Brent markets have rallied a bit during the trading session on Tuesday, reaching towards the $40 level. That being said, the 50 day EMA above will more than likely be an area where we look at the resistance coming back in, perhaps somewhere around the $42.50 level. I do think it is only a matter of time before we see signs of exhaustion come back into this market, something that I would be more than willing to start selling into. If we do not get any type of clear winner, that might exacerbate the situation and send this market much lower. Ultimately, I do think that this is a market that you sell rallies, you do not buy because quite frankly the demand is not going to be there.
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