Crude Oil Price Forecast – Crude Oil Markets Trying To RecoverCrude oil markets have rallied a bit during the trading session on Wednesday, in a bid to recover from psychologically important figures. Having said that, we are at the extreme of the overall range, so oil needs to make a stand now or simply fall apart.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Wednesday, bouncing from the $50 level. This is an area that has plenty of support underneath, but if we break down to a fresh, new low it’s very likely that the market will go looking towards the $45 level underneath. The $52.50 level above offers significant resistance so if we were to break above that level it would be a very bullish sign for WTI and then flip the idea of trading this market into “buying on the dips” situations. If that happens, the market then goes to the $55 level above where we should see the 50 day EMA.
Crude Oil Price Forecast Video 13.02.20
Brent markets also rallied as you would expect, breaking above the $55 level but it’s not until we clear the $57.50 level that I would flip over to a “buy on the dips” scenario. In the meantime, it’s very likely that the market should continue to see a lot of noise, and all things being equal the $53 level looks to be a major support level, even if it is just from a short-term standpoint. A breakdown below that level opens up the door to the $52.50 level, and then eventually the $50 level underneath there. With that, keep in mind that this is a market that has sold off quite drastically, so it makes sense that a little bit of a bounce in this area could occur as things have gotten a bit overdone.
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