Crude Oil Price Forecast – Crude Oil Markets Get Massive Bounce

WTI Crude Oil

The WTI Crude Oil market rallied significantly during the trading session on Thursday, reaching above the $25 level. Having said that, I think there is a lot of resistance above at the $30 level, so I’m looking for an opportunity to short this market in that general vicinity. All things being equal, I think that the market probably will reach towards the $20 level given enough time, because quite frankly there isn’t going to be enough demand. Yes, this is a technically strong bounce but that being said it’s only can lead to more selling. It’s not until we break above the 50 day EMA that I would even contemplate the idea of going long.

Crude Oil Video 17.04.20

Brent

Brent markets also rallied rather significantly during the trading session on Thursday but sold off again as we continue to see a lot of weakness worldwide. With this being the case, the market is very likely to continue to find plenty of selling pressure on rallies, and although it did not rally as the WTI market did, it doesn’t matter because the trend is the same in either one. I believe that the $35 level above is massive resistance, just as I also recognize that the $25 level underneath is massive support. If we were to break down below that level, then it would open up a fresh wave of selling in the market and will continue to drive this market going forward. Unless something changes drastically, it’s difficult to imagine a scenario where things change anytime soon.