Crude Oil Price Forecast – Crude Oil Markets Shoot Straight Up In The Air

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied significantly during the trading session on Wednesday as we gained over 30%. While that sounds impressive, the reality is that the market started at an extraordinarily low level. The $20 level above continues to be massive resistance and it is likely that we will go looking towards the area just above in order to start selling. The $17.50 level looks to be rather resistive, and most certainly the $20 level is as well. The $20 level was previous support, and now it is an extraordinarily massive resistance barrier. The downtrend should continue as we still have major issues when it comes to storage.

Crude Oil Video 30.04.20

Brent

Brent markets also rallied during the day but perhaps not in as dramatic of a fashion. The $25 level was previous support, and now it looks as if that area should offer resistance. We are still in a long-term downtrend and that has not changed. Quite frankly, somewhere around the $25 level I would be more than willing to put on the small short position to aim towards the $20 level again. The 50 day EMA is reaching lower, but it is all the way up at the $34 level, meaning that we have a long way to go before we even meet up with that indicator. This is a market that has no business rallying for more than a quick trade, and we certainly have already seen that. Fading rallies should continue to work as the fundamentals for crude oil remain negative.