Crude Oil Price Forecast – Crude Oil Markets Plummet Again

WTI Crude Oil

The West Texas Intermediate Crude Oil market had a good headline inventory number, but at this point it’s falling anyway, due to a lack of demand and the fact that although the number was better than anticipated, it should be thought of as “less bad.” That of course isn’t reason to get bullish, and the fact that the distillates came in at less than impressive figures suggests that we are still going to have quite a few issues. That being said, we did bounce from the psychologically significant $55 level, and that is something worth paying attention to.

To the upside, the 200 day EMA is all the way over the $57.80 level, so short-term rallies at this point are probably to be sold into and a breakdown below the bottom of the candlestick for the trading session on Thursday should open up the door to the $52.50 level.

Crude Oil Forecast Video 24.01.20

Brent

Brent markets also broke down significantly, testing the $61.50 level before bouncing slightly. A rally at this point should find plenty of sellers above, especially near the 200 day EMA. Ultimately, the market does look as if it’s likely to go down towards the $60 level, which is a large, round, psychologically significant figure and an area where we have seen buying in the past. To the upside, the $65 level is massive resistance just as the 200 day EMA is, so it’s only a matter of time before players will be able to short this market on the first signs of exhaustion. The bigger picture of course is that we are well within the consolidation area, and therefore not much has changed other than we are heading towards the bottom of it.