Crude Oil Price Forecast – Crude Oil Markets Continue to Show Signs of ResistanceThe crude oil markets pulled back a bit during the Friday session as the market is starting to face a gap in one grade and a major breakdown in another.
WTI Crude Oil
The West Texas Intermediate Crude Oil market pulled back a bit during the trading session on Friday, as the market has gotten a bit too far ahead of itself. As the WTI market is facing a major gap above, I would anticipate that there are going to be sellers looking to take advantage of that. Furthermore, although gaps do tend to get filled, they do not necessarily have to. Sometimes, you get to a bottom region of a gap and then turn right back around. That might be what is happening here. We will have to see but if we break down below the bottom of the candlestick for the trading session on Friday, then I would be a seller at that point, looking for a move closer to the $28 level.
On the other hand, if the market breaks out above the high from the Thursday session, then it is likely that we go looking towards the $40 region which is near the top of the overall range of the gap.
Crude Oil Video 25.05.20
Brent markets pulled back a bit as well, as we had reached an area that caused a bit of resistance on Thursday. The 50 day EMA is sitting just below though, so that could also offer support, so it is likely that we will see buyers underneath as well. However, if we break down below the 50 day EMA then the Brent market probably start to sell off. At that point, the market is likely to go looking towards the $30 level. Either way, I think we are going to have a lot of volatility.