Crude Oil Price Forecast – Crude Oil Markets Stabilize

WTI Crude Oil

The West Texas Intermediate Crude market has gone back and forth during the course of the session on Monday to show that the $20 level is in fact going to continue to be a major issue. At this point, the $20 level is going to be difficult, so if we were to break above there then it is an exceedingly difficult move higher, as the 50 day EMA is sloping lower and reaching towards the $27 level. There is a lot of noise between here and there, so it is only a matter of time before sellers come back in and push this market lower. Alternately, if we break down below the lows of both Monday and Friday, the market probably breaks down quite a bit.

Crude Oil Video 05.05.20

Brent

Brent markets went back and forth during the session as well, as it looks like they may be in the process of trying to top out. The $27 level above is a significant amount of resistance that extends to at least the 50 day EMA, and therefore I would be a seller of this market in general. This is not to say that we cannot rally but I do recognize that we are in a downtrend, and there is quite a bit of negative pressure out there when it comes to crude oil in general. The crude oil markets continue to be hammered by the fact that the demand for crude oil is dropping off of a cliff and of course there is a massive oversupply issue. This is a difficult thing to turn around.