Crude Oil Price Forecast – Crude Oil Markets Trying to Build Base
WTI Crude Oil
The West Texas Intermediate Crude Oil market has initially tried to rally during the trading session on Tuesday but has turned around to show signs of exhaustion. At this point, the market is likely to continue to see a lot of pushback on rallies, due to the fact that there is a serious lack of demand out there. Ultimately, this is a market that that will continue to be very noisy but is obviously somewhat oversold from a technical standpoint. Looking at this chart, there is a gap above, but we don’t have the positive news to push this market higher. With that being the case, I think you continue to see sellers come in at the $25 level, the $27.50 level, and then the $30 level.
Crude Oil Video 25.03.20
Brent
Brent markets gapped higher to kick off the trading session on Tuesday but have been very quiet. The $30 level above should offer significant resistance, as it has previously. However, the market did break above there, then the $34 level would be the next target for sellers to come in and get involved. I don’t think that Brent will take off anytime soon, because there is a serious demand issue. However, if the Saudi and Russian governments can come together and end this price war, it’s very likely that the market could bounce significantly, at least into the gap. I have no interest in buying this market, and simply looking for an opportunity to short this market on signs of exhaustion above.
This article was originally posted on FX Empire
