Advertisement
U.S. markets close in 2 hours 34 minutes
  • S&P 500

    5,250.38
    +1.89 (+0.04%)
     
  • Dow 30

    39,760.89
    +0.81 (+0.00%)
     
  • Nasdaq

    16,372.81
    -26.71 (-0.16%)
     
  • Russell 2000

    2,127.45
    +13.10 (+0.62%)
     
  • Crude Oil

    82.80
    +1.45 (+1.78%)
     
  • Gold

    2,239.70
    +27.00 (+1.22%)
     
  • Silver

    24.92
    +0.17 (+0.68%)
     
  • EUR/USD

    1.0801
    -0.0028 (-0.26%)
     
  • 10-Yr Bond

    4.1980
    +0.0020 (+0.05%)
     
  • GBP/USD

    1.2627
    -0.0011 (-0.09%)
     
  • USD/JPY

    151.3550
    +0.1090 (+0.07%)
     
  • Bitcoin USD

    70,498.56
    +1,281.44 (+1.85%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Crude Oil Price Forecast – Crude Oil Markets Continue to Show Signs of Stress

WTI Crude Oil

The West Texas Intermediate Crude Oil market fell rather hard during the trading session on Monday as we continue to see a lot of weakness in this contract. After all, we are running out of places to store oil, so nobody wants to take delivery of it. In other words, there simply are no bids. Furthermore, after seeing what happened with the May contract, a lot of traders are going to be overly cautious about buying this contract in general. Demand is still very weak, and that is not going to change anytime soon. Oversupply and lack of demand brings gravity to the markets. I would not be surprised at all to see this one trade negative eventually. Rallies towards the $20 level are selling opportunities, the $10 level should be short-term support.

Crude Oil Video 28.04.20

Brent

Brent markets pulled back towards the $20 level during the trading session on Monday but then bounced a bit. That being said, the $23 level is a short-term resistance barrier and the $25 level above there is much more significant. In other words, this bounce is something that you should be selling into at the first signs of failure. If the market was to turn around a break down below the $20 level, that would be an extraordinarily negative sign, but at this point I prefer to fade rallies as they happen in both of these grades of markets, because you do get the occasional “bear market rally” that can cause major issues. Ultimately, I like selling signs of strength as there is no demand.

This article was originally posted on FX Empire

More From FXEMPIRE:

Advertisement