Crude Oil Price Forecast – Crude Oil Markets Rally Significantly

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially rallied during the trading session on Monday, perhaps in response to the vaccination news coming out of Pfizer. However, the market has gotten way ahead of itself, so it is very likely that we will see this market fade a bit. If it does, then it is likely that we drop right back below the 50 day EMA. This makes sense, because even if we do see some type of vaccination, it is quite some time away, and therefore it is difficult to imagine that oil should suddenly be worth $10 more a barrel or whatever. This sudden 9% jump in the market more than likely will not stick for the longer term.

Crude Oil Video 10.11.20

Brent

Brent markets have rallied significantly during the trading session on Monday as well, breaking towards the $43.50 level. At this point, it looks as if the market is testing a major resistance area from previous trading, just as if the 200 day EMA sits above there. Ultimately, I am looking at this as an opportunity to start shorting this market but would probably have to do based upon short term time frames. Ultimately, the market is likely to see another attempt to go lower, based upon what I am seeing in the stock markets. After all, the stock market shot straight up in the air and then fell over again. At this point, it is very difficult to imagine that crude oil will take off without a lot of positivity and other risk-based markets as well.

For a look at all of today’s economic events, check out our economic calendar.