Crude Oil Price Forecast – Crude Oil Markets Run Into Wall of Resistance

WTI Crude Oil

The West Texas Intermediate Crude Oil market has tried to shoot above the $20 level but has given back quite a bit of the gains carried through the week. At this point, the $20 level is an area that has been previous support, so now looks as if it is going to offer selling opportunities. At this point, we have to worry about whether or not crude oil will be used by anyone, as automobiles and flying have 70% of the demand built in. At this point, the market is likely to see selling pressure going forward, as we are reaching previously mentioned “market memory” areas.

Crude Oil Video 04.05.20

Brent

Brent markets tried to rally as well but gave back some of the gains as we get close to the $27 level. By forming this candlestick, it suggests that we are ready to drop from here and perhaps go looking towards the $25 level. Below there, the market might go looking towards the $21 level, but regardless, this is a market that is in a downtrend so at this point I have no interest in buying and I think that crude oil has a long way to go before it can be bought. Storage issues are going to be a problem over the next several weeks, so that will of course continue to be a major issue here as well. The $30 level above looks extraordinarily heavy, and it should be difficult to break through in the near term, while reaching towards the $21 level seems to be much easier.