Crude Oil Price Forecast – Crude Oil Markets Test Major Support
WTI Crude Oil
The West Texas Intermediate Crude Oil market has broken down during the trading session on Thursday, slicing through the crucial $36.25 level that had been so supportive. However, we have broken down through there and reached towards the $35 level. We have bounced from there, and now it looks very likely that we will continue to short off signs of exhaustion. Looking at this chart, the market will probably continue to drop from here and perhaps reach much lower. Ultimately, I like the idea of shorting this market on rallies as we have further to go to the downside from a serious lack of demand and of course Europe locking itself down.
Crude Oil Video 30.10.20
Brent markets have broken down through the support level at $39, showing signs of negativity yet again. In fact, it looks as if the Brent market is slightly more negative than the WTI market, which makes quite a bit of sense considering that Brent is more widely used around the world outside of the United States. With that being the case, I think that we will continue to see a lot of noisy trading, and therefore I am looking for short-term rallies to fade. The market is very likely to go looking towards the $35 level, and as a result I think that if you drill down to short-term charts, it is very likely that you will get signs of exhaustion that you can jump into. Ultimately, this is a market that will continue to see a lot of negativity and therefore I have absolutely no interest in buying this market anytime soon.
For a look at all of today’s economic events, check out our economic calendar.