Crude Oil Price Forecast – Crude Oil Markets Pull Back

WTI Crude Oil

The West Texas Intermediate Crude Oil market pulled back a bit during the trading session on Monday, but it should be kept in mind that it was Labor Day in the United States so therefore it is a lack of volume that will be a major contributor to what we have seen during the day. Ultimately though, the market has drifted lower for the third session in a row, although we did see some short covering. Ultimately, I think that we rally but given enough time sellers will be interested in shorting this market, particularly near the $40 level. After that, the market is likely to go looking towards the $35 level. I have no interest in buying until we break above the 200 day EMA.

Crude Oil Video 08.09.20

Brent

The Brent market went back and forth during the trading session after gapping lower to kick off the session. I think Brent is also going to continue to be very bearish in general, especially if the US dollar starts to pick up any type of strength. Nonetheless, I think that fading rallies continues to be a major way going forward, perhaps opening up the door towards the $40 level. I have no interest in buying this market until we break above the 200 day EMA, which is all the way up at the $45.72 level. I believe that we are more likely see rallies show signs of exhaustion that people will fade until we reach down towards the $40 level underneath. Breaking down below there could open up the door to much lower pricing.

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