Crude Oil Price Forecast – Crude Oil Markets Test SupportCrude oil markets have gotten hammered during the trading session again on Monday, reaching down below the $52.50 level in the WTI grade. At this point, the market is due to bounce from an oversold condition.
WTI Crude Oil
The WTI Crude Oil market broke down significantly during the trading session on Monday again, as there seems to be a lot of concern out there about whether or not the global growth will slow down due to the situation in China, and quite frankly the lack of demand for crude oil in general. With that being the case, it should be noted that we are at extreme lows and a bounce makes quite a bit of sense as there is significant support from the $50 level that extends to the $52.50 level. At this point, the market could very easily break towards the $55 level where it would pick up more selling pressure.
Crude Oil Video 28.01.20
Brent markets are also oversold, and therefore it looks like we are going to test the $57.50 level, the $57.50 level extends down to the $55 level as far as support is concerned, so I do believe it’s only a matter of time before buyers come back in, at least for a short term trade as we have gotten far ahead of ourselves to the downside. Remember, markets can panic rather quickly, but panic doesn’t hold for very long. At this point, the market is still at the bottom of the overall range, so we are still well within the tolerance of normalcy. That being said, if the market was to break down below the $55 level, that would be extraordinarily negative. Going back to the WTI Crude Oil market, if we were to break down below the $50 level over there, that would also be extraordinarily dangerous.
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