Crude Oil Price Forecast – Crude Oil Markets Gapped Lower

WTI Crude Oil

West Texas Intermediate Crude Oil has gapped a bit lower during the trading session on Wednesday to show signs of weakness again, but having said that we have turned around and show signs of further weakness as the market continues to trade in the same range that we have been in. Ultimately, I think that we go down towards the $37 level, an area that has offered support. I ultimately believe that we probably break down through there as well, especially if the US dollar continues to strengthen toxic for the value of commodities. To the upside, the 200 day EMA sits at the $41.18 level, so I think that it will be difficult to break above there.

Crude Oil Video 08.10.20

Brent

Brent markets also rallied after initially gapping lower, and then fell again. Ultimately, the market is likely to go down towards the $40 level, which of course is a large, round, psychologically significant figure, and has already been pierced before which is probably the most important thing to pay attention to. A break down below the lows could open up the move down towards the $37.50 level, possibly even down to the $35 level after that.

I have no interest whatsoever in trying to get cute with this and therefore I am looking to sell rallies more than anything else, and therefore I am ignoring buying opportunities at this point as the demand simply will not be enough to turn this market around anytime soon. As we drift lower, this continues offer plenty of shorting opportunities based upon short-term charts.

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