Crude Oil Price Forecast – Crude Oil Markets Gap Lower to Open Week

WTI Crude Oil

The West Texas Intermediate Crude Oil market gapped lower to kick off the trading session on Monday, showing significant concern about the reopening trade reentering the minds of traders. Furthermore, we have a strengthening US dollar which of course works against the value of the market, both of which are flying in the face of the previous bullish trend. While we have held the lows from the previous fall, if we break down below the $65 level it would make a “lower low”, just after forming a “lower high.” The structure the market would be breaking down and it is likely that we could see the market go looking towards the 200 day EMA rather quickly. As far as buying is concerned, we need to recapture the $70 level before I consider it.

Crude Oil Video 10.08.21

Brent

Brent markets got hit as well, gapping below the $70 level right away. By doing so, it shows a significant amount of weakness into this market, but it should be noted that the bottom has held. The question now is whether or not this is going to be a “double bottom”, or is it simply a last-ditch effort to keep this market afloat? If we break down below the lows of the session on Monday, it is very likely that we will see the market fall apart and go looking towards the 200 day EMA underneath at the $63.75 region. Ultimately, this is a market that I think will continue to see a lot of bullish pressure, but if we can take out the 50 day EMA above, I might be convinced to start buying again.

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