Crude Oil Price Forecast – Crude Oil Markets Continue to Test 50 Day EMACrude oil markets continue to show a lot of noise, as the inventory number was better than anticipated but at the end of the day the markets gave up gains.
WTI Crude Oil
The WTI Crude Oil market has tried to rally during the trading session on Wednesday but gave up gains again at the 50 day EMA in both grades that I follow. The $30 level in the WTI market of course offers significant psychological resistance and therefore think it is only a matter of time before we fade rallies. The fact that the inventory numbers were better than anticipated, and yet the market failed to gain, it suggests just how weak this market really is. Fading rallies continues to work, and as a result I would treat it as such. Ultimately, this is a market that should be sold into every time it tries to gain.
Crude Oil Video 14.05.20
Brent markets continue to see a lot of back and forth as well, sitting right at the $30 level. This is an area that extends in resistance all the way to at least the 50 day EMA, so as long as we do not break above there, it is likely that we will roll over and go looking towards the $25 level, possibly even the $20 level. I see no interest in trying to buy the market, because quite frankly there is going to be a serious lack of demand for quite some time, and as a result it is likely that the market is going to see a lot of selling pressure as the economies around the world continue to fail. Rallies at this point are to be sold into, and therefore I am looking for signs of exhaustion. Until there is some type of major change in the economy, I cannot see oil rallying for a bigger move.