Crude Oil Price Forecast – Crude Oil Markets Gap Higher Tuesday

WTI Crude Oil

The WTI Crude Oil market gapped to kick off the trading session on Tuesday, pull back to fill the gap and then rallied again. As the Federal Reserve has cut interest rates by 50 basis points during the trading session, it has driven the value of the US dollar lower and it should in theory drive up commodities in general, and crude oil won’t be any different. Having said that, there are serious demand concerns and I think at this point what we are doing is setting up a nice selling opportunity at higher levels. The $50 level should bring in a new slew of selling, and therefore it’s likely that area will bring in enough resistance to start shorting again.

Crude Oil Video 04.03.20

Brent

Brent markets also gapped higher, came back to fill the gap, and then rallied again. For Brent, it looks as if the $55 level above is significant resistance, so any significant push towards that area should be a selling opportunity, assuming that it is in fact going to happen. Quite frankly, there’s no way to buy this market as demand for crude oil is certainly going to be low in a world that is dealing with massive outbreaks of coronavirus, so therefore the only thing that you can count on is the fact that movement will be slower. At this point, if you are small enough with your position you could probably sell from here, but you have to be aware the fact that the $55 level above could be targeted between now and then.