Crude Oil Price Forecast – Crude oil markets trying to fill the gap

Crude oil markets fell a bit during the trading session on Wednesday, reaching down to try to fill the gap. By doing so, it looks as if the market is trying to finally make that move, perhaps getting back to a bit of balance after the Saudi drone strike.
Christopher Lewis
Crude Oil Price Forecast - Crude oil markets trying to fill the gap

WTI Crude Oil

The WTI Crude Oil market has fallen again, gapping lower to start off the session and now has broken towards the bottom of the gap from the Saudi drone attack. At this point, the market looks likely to see a bit of support near the $55 level, as the market has seen the lot of noise in this area previously. At this point, if we break down below the gap, then the market could go down towards the $52.50 level. Obviously though, this is a market that has had a tough ride as of late, so the exhaustion of course makes quite a bit of sense.

Crude Oil Price Forecast Video 26.09.19

To the upside, the 200 day EMA continues offer resistance but quite frankly I don’t think we get there. We have had a bearish inventory figure come out of the United States, with a much bigger build than anticipated. Because of this, it’s very likely that the downward pressure should continue, but we have fallen so far as of late it makes quite a bit of sense that we bounce around in this general vicinity in the short term. If we were to break down below the $55 level it would represent a significant flush lower, reaching down towards the $52.50 level. To the upside, if we were to break above the 200 day EMA, even though I don’t think it happens, that could open up the door to the $59 level.

Brent

Brent markets have initially falling during the trading session to fill the gap near the $60 level, but then turned around of form a nice-looking hammer. The 50 day EMA is currently hanging about the $62 level, and a break above there obviously is a very bullish sign. The gaps been filled, so I think a lot of the short-sellers are out of the market now. You probably best to simply sit on the sidelines, and as a result it’s a market that will continue to chop back and forth.

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