Crude Oil Price Forecast – Crude Oil Roles Over

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially tried to rally during the trading session on Friday but gave back the gains somewhere near the $27.50 level to turn around and form a shooting star. This of course is a very negative candlestick, and if we can break down below the bottom of the candlestick it’s likely that the market is going to go back down towards the $20 level. However, if we were to break above the top of the shooting star, that could open up the door to the $30 level, perhaps even the $34 level after that. I recognize that there is a massive gap above that extends to the $42 level, and that could of course be a target if we get some type of “melt up” scenario, but I don’t see that happening anytime soon.

Crude Oil Video 23.03.20

Brent

Brent markets also initially tried to rally during the trading session but found enough trouble at the $32.50 level to turn around a break below the $30 level yet again. At this point, the market is likely to go looking towards the lows again, perhaps in a bid to cover positions going into the weekend. Regardless though, this is a very bearish market and with the coronavirus slowing down the global economy, it makes quite a bit of sense that crude oil suffers still. Furthermore, the Russians and the Saudi Arabian governments don’t look very likely to change their attitude overall. As long as that’s the case, there is going to be a whole lot of crude oil in the market that is a longer lasting issue.