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Crude Oil Price Forecast – Thin Volume Markets

The Presidents’ Day holiday in the United States will have kept the crude oil markets a bit quiet due to the fact that volume was so thin. That being said though, there is an interesting technical set up coming.
Christopher Lewis

WTI Crude Oil

The West Texas Intermediate Crude Oil market has been rather quiet during the trading session on Monday but that makes quite a bit of sense considering that we are watching the Americans celebrate Presidents’ Day. This means that Chicago was closed, and therefore less trading with being done. That being said, there is a technical set up at the $52.50 level, as it is the top of the overall consolidation that we have seen for some time. If the market can break above there, we could get a bit of a recovery towards the $54 level in the crude oil market as fears of the coronavirus may have been a bit overdone.

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Crude Oil Video 18.02.20

Brent

Brent markets also would have been very thin, but you can see that the market initially fell but then turned around to show signs of strength again. If the market can break above the $57.50 level, it could send this market looking towards the $60 level. If the market was the pullback from here there should be plenty of support though, and therefore I think it is trying to build up enough momentum to go higher. If the market was to clear the $60 level, then it’s likely that the market could go looking towards the 200 day EMA. Looking to the downside, the market should see plenty of support at the $55 level and it’s not until we break well below that level until the market falls apart. All things being equal, this is a market that is overdone, and I think we are starting to see it turn the corner a bit.

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