Crude Oil Price Forecast – Crude Oil Markets Trying to Fill Gap

West Texas Intermediate Crude

The WTI Crude Oil market has gone back and forth during the trading session on Thursday as we await the decision by OPEC as to whether or not to increase production cuts. From a technical analysis perspective, it should be noted that the gap above is likely to get filled. Ultimately, that means that the market could go towards the $41 level. Longer-term speaking, it is almost always the move, to fill gap. With that being the case, I think a lot of traders are going to try to push his higher. Pullbacks at this point should be supported all the way down to the $30 level, so I do think that eventually you should get a buying opportunity even if we do rollover from here.

Crude Oil Video 05.06.20

Brent

The Brent market has pulled back just a bit from the $40 level, but quite frankly this is a scenario where market has shown itself to run into trouble, so a pullback from here does not necessarily surprise me if it happens. I look at it as potential value though, and of course a move above the $40 level on a daily close will then kick off the idea of filling the gap to reach towards the $45 level. The 200 day EMA is starting to reach down towards that level as well, so I do believe that eventually Brent will continue to go higher from here. I believe that the 50 day EMA should be supportive, and even though we are a little bit tired at this point, if OPEC cuts those production numbers, it is likely that we will continue to rally from there.

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