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Crude Oil Price Forecast – Crude Oil Markets Pressed Towards Gap

At this point, it is likely that the market will try to at least test the gap, if not fill it.
Christopher Lewis
Crude Oil Brent WTI

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied significantly during the trading session on Monday, as crude oil continues to rally based upon so many of the US rigs being closed. There is a gap above that should be almost impenetrable, and quite frankly a lot of this “fear of missing out” trade will more than likely meet it is resistance soon. Volumes are declining, and that is not a good look for a rally. At this point in time, this is probably more of a technical move than anything else, so pay attention, it looks as if we get short-term bullish pressure still, but there should be plenty of resistance all the way to the $41 level.

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Crude Oil Video 19.05.20

Brent

Brent markets have exploded to the upside, slicing through the 50 day EMA as well, but I still see a significant amount of resistance extending to the $45 level. There is plenty of room for short-term traders to take it higher, but I think $40 is where you really start to run into trouble. The markets have been running on pure “FOMO”, (all markets) and therefore this market has rallied quite nicely. That being said though, this is a market that is still very much in a downtrend and therefore I am looking for opportunities to short this market as trading against the trend is in my forte. If you are a short-term trader, then of course you can have a crack at $40 but I will be on the sidelines waiting for an opportunity for a bigger move.

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