Crude Oil Price Forecast – Crude Oil Markets Get Hammered
WTI Crude Oil
The West Texas Intermediate Crude Oil market has gapped lower rather significantly during the course of the open on Monday, and then just fell right out of bed. By doing so, it suggests that the market is going to continue to see downward pressure, and perhaps even break down below the $65 level. Keep in mind that the markets are starting to price out the idea of inflation, and oil is one of the first places you see that. This does not mean that you should chase this trade, especially at this time of the year. I will now be looking for exhaustion on short-term rallies that I can fade. That being said, if we break down to a fresh, new low, then I will simply follow the trend, but my preferred trade is to short rallies.
Crude Oil Video 21.12.21
Brent markets also of course have done the same thing, slicing through the 200 day EMA and even the $70 level. At this point, I think the market will probably get a little bit of a bounce, but that bounce will almost certainly be sold into. At this point in time, I anticipate a lot of choppy and erratic trading, because we are at the end of the year. A lot of trading is going to be about closing positions for the year, so keep that in mind. Ultimately, this is a market that should be noisy, but I think you get an opportunity to sell it a few days down the road. If the $65 level gets broken to the downside, the bottom will fall out. Regardless, keep your position size reasonable, you can get into a lot of trouble this time a year.
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