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Crude Oil Price Forecast – Crude Oil Markets Continue to Show Recovery

By:
Christopher Lewis
Updated: Feb 20, 2020, 16:17 UTC

The crude oil markets rallied again during the trading session on Thursday, as the markets had been oversold. At this point, we are seeing a deceleration of new cases of coronavirus in China, at least as far as official numbers are concerned.

Crude Oil WTI Brent

WTI Crude Oil

The WTI Crude Oil market was rallying during the day on Thursday, breaking above the $54 level. It is starting to face a little bit of resistance, but quite frankly this is a market that has been oversold for some time. While there are concerns out there when it comes to oversupply of crude oil, the reality is that the market has fallen apart and a little bit of short covering had to happen. The 50 day EMA just above could offer a bit of resistance at the $55 level, thereby making it nice target. If the market can break above there, then the $57.50 would be the next likely target as it is the middle of the overall consolidation range.

Crude Oil Video 21.02.20

Brent

Brent also has rallied, reaching towards the $60 level. The 50 day EMA sits just above, and if we can break above that it’s likely that the market could go looking towards the $65 level, via the 200 day EMA. Underneath, the $57.50 level should offer support, and therefore should be looked at as such. Just like in the West Texas Intermediate market, we are at the bottom of the overall range, and it does look like we are a bit oversold. I don’t necessarily think we are going to explode to the upside from here, but I do recognize that we need to look at this as a market that is trying to turn around and show signs of life again. All things being equal, we are at extraordinarily low levels and therefore offering a bit of value.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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