Crude Oil Price Forecast – Crude Oil Markets Pulled Back SlightlyQuite frankly, crude oil markets have gotten ahead of themselves and now they are testing a major gap.
West Texas Intermediate Crude Oil
The West Texas Intermediate Crude Oil market has initially tried to rally during the trading session on Thursday but gave back the gains as soon as we got into the gap area. Because of this, it looks like we could pull back from here, especially as the market has gotten a bit overdone. After all, the market has gotten a bit of head of itself and it also has to think about the idea of whether or not there is going to be enough demand. Even if we do rally from here, the $41 level above should be exceedingly difficult to get above, not only due to the top of the gap, but also the 200 day EMA.
Crude Oil Video 22.05.20
Brent markets also tried to rally during the trading session but seems to be running into some noise above the $36 level. Even if we do break above here, the $40 level is the beginning of a major gap that extends all the way to the $45 level. Ultimately, this is a market that has gotten far ahead of itself the 50 day EMA underneath is at the $32.83 level, and as a result it is likely that we could see buyers in that area, but if we were to break down below it could send this market much lower. Ultimately, this is a market that is overdone and at the very least needs to pull back a bit in order to calm down.