Crude Oil Price Forecast – Crude Oil Markets Trying to Stabilize

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gapped higher to kick off the trading session on Thursday to show signs of life, as the $25 level above offers significant resistance. If we break above there, then it’s likely we go looking towards the $27.50 level. All things being equal, the market will try to fill that gap to the upside, perhaps reaching towards the $42 level. At this point, the market will find a tremendous amount of selling pressure, but I think it is more than likely going to be a bounce more than anything else that’s going to happen. That bounce should be sold into though, but those who are particularly nimble may be able to find a little bit of value down at this extraordinarily low level. Longer-term, the market faces an extraordinarily large amount of downward pressure.

Crude Oil Video 20.03.20

Brent

Brent markets of rallied during the trading session, pulled back towards the $25 level, and then bounced again. The $30 level above is psychological and perhaps even structural resistance, but I think it’s only a matter of time before we try to get above there and reach towards the $34 level. I believe it’s only a matter of time before we get some type of relief rally, and this might even be the start of it. All things being equal though, I would not be overly aggressive about putting a huge position on, but clearly a short-term trader may be able to take advantage of this volatility, lease for just a small amount of time.