Crude Oil Price Forecast – Crude Oil Markets Drift Lower

West Texas Intermediate Crude Oil

The West Texas Intermediate Crude Oil market broke down during the trading session on Monday, slicing through the $40 level yet again as we continue to see a lot of negativity in this market at the top of the range, and especially as the 200 day EMA offers plenty of resistance. To the downside, the market is looking at the $36.50 level underneath as support, so overall I think this market is simply bounce around in the same region that we have been in for a while, as we do not have any clarity as far as demand, and quite frankly this point I think we may stay in this short-term range for the next several weeks.

Crude Oil Video 13.10.20

Brent

Brent markets broke down a bit during the trading session on Monday, breaking below the 50 day EMA. At this point, the market is likely to go looking towards the $40 level, perhaps even breaking below there. If we can make a fresh, new low then I think the Brent market will probably drag the crude oil markets on the whole lower. I think fading rallies continue to be an opportunity to short this market and the best way to play it. The 200 day EMA is at the $45 level, which is a large, round, psychologically significant figure, and an area of resistance anyway. Underneath, if we were to break down below the support then the market is likely to go looking towards the $35 level. Ultimately, this is a market that I think the sellers will continue to push things lower unless of course the US dollar collapses.

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