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Crude Oil Price Forecast – Crude Oil Trying to Break Down Even Further

The crude oil market initially tried to rally during the trading session on Wednesday but rolled right back over as we continue to see a lot of concerns when it comes to demand and of course the entire price war situation.
Christopher Lewis

WTI Crude Oil

It looks as if the crude oil markets will continue to be flooded with supply, and therefore it’s likely that we will see lower pricing. The $20.00 level is going to be crucial support, but ultimately if we break down below there, it’s likely that the $17.50 level will be the next target. A rally above the $22.50 level would open up the door towards the $25.00 level. I do believe that it’s only a matter of time before the sellers come back though, so quite frankly I welcome rallies that I can take advantage of, as we should continue to see pullbacks.

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Crude Oil Video 02.04.20

Brent

Brent markets fell a bit during the trading session as well, reaching the $25.00 level. This is an area that could be a gateway to much lower prices, perhaps reaching down towards the $22.50 level, maybe even the $20.00 level. In the short term, I believe that rallies are to be sold, especially near the $27.50 level, and after that the $30.00 level. All things being equal, I think that we are a long way away from a rally, and therefore simply fading short-term bounces will continue to offer the best trading opportunities, as the market continues to show a lot of negativity in general. We will eventually get a nice longer-term opportunity, but in the meantime I think it’s simply best to follow the trend that we have seen in this horrifically brutal negativity that will only continue due to the fact that we have no real hope of the global economy picking up in the short term.

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