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Christopher Lewis

WTI Crude Oil

The WTI Crude Oil market has rallied a bit during the trading session on Tuesday, breaking back above the $50 level for a sign of strength. That being said though, there is a ton of noise between here and $52.50, so it’s difficult to imagine that the market is simply going to break out to the upside from here. If it did break above $52.50, then it’s likely that the market can go towards the $55 level. Furthermore, if the market breaks down to fresh, new lows, then it should open up the door to the $47.50 level, and then eventually the $45 level after that. Ultimately, this is a market that is suffering at the hands of the coronavirus and of course the oversupply issues.

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Oil Forecast Video 12.02.20

Brent

Brent markets rallied a bit during the trading session on Tuesday, reaching towards the $55 level. That’s an area that shows a significant amount of resistance extending all the way to the $57.50 level, so it’s not until we break above that level that I would be interested in buying. I think that Brent will continue to offer selling opportunities on short-term charts as the demand for crude oil continues to slip. Furthermore, Brent is much more sensitive to China than the West Texas Intermediate Crude oil market is. At this point, rallies are to be sold into but if we were to clear the $57.50 level, then it could change things and send this market looking towards the $60.00 level over the longer term. At this point, the market is very bearish, and therefore I still prefer selling in general.

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