Crude Oil Price Forecast – Crude oil markets show supportCrude oil markets fell initially during the trading session on Thursday, crashing into lower levels before turning around and showing signs of support. This could be a bit of short covering as we are heading into the jobs number on Friday, but it also could be structural support based upon horizontal studies.
WTI Crude Oil
The WTI Crude Oil market initially fell during the trading session on Thursday, before bouncing significantly to form a hammer later in the day. At this point, the market looks as if we are getting ahead of the jobs figure, which of course will have its influence on significant price action going forward. If the jobs number is weak, that could be even more bearish pressure on crude oil. All things been equal though, the $50 level underneath will probably be attempted but a short-term bounce may happen between now and then. If we were to break down below the $50 level, that would be an extraordinarily negative sign.
Crude Oil Forecast Video 04.10.19
Brent markets also fell initially during the trading session on Thursday, but then turned around to show signs of life. The $55 level underneath is massive support, so breaking down below there would not only break the bottom of a hammer, but it would also unwind this market terribly. Rallies at this point will continue to see resistance above, especially near the $60 level above which is a large, round, psychologically significant figure, and of course the 50 day EMA just above there. With that, I believe that this market will probably continue to show weakness, but we are overextended so a short-term bounce is probably necessary. There is a serious lack of demand when it comes to crude oil globally, so having said that it’s difficult to imagine a scenario where oil has a sustainable rally.
Please let us know what you think in the comments below