Crude Oil Price Forecast – Crude Oil Markets Continue to Struggle with Resistance

Christopher Lewis
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WTI Crude Oil

The West Texas Intermediate Crude Oil market had initially tried to rally during the trading session on Friday but give back the gains as we get close to the 50 day EMA. That is an area that is going to attract a lot of attention, not to mention the fact that the psychologically significant $30 level is just above there. That is an area that has caused resistance as well, so at this point in time it is likely that the sellers jump in at this market. Any time we get close to that range, there should be plenty of selling pressures. A break down below the bottom of the shooting star from the Thursday session opens up the selling, as we should then go looking towards the $20 level underneath.

Crude Oil Video 11.05.20

Brent

Brent markets have rallied slightly but at this point if we break down below the shooting star from the Thursday session over here, it is highly likely that we break down towards the $25 level, possibly even the $20 level. Nonetheless, there is the likelihood of volatility, so I prefer to fade rallies when they show up. I believe that the market will eventually try to fill the gap, but it is going to take some time to get there. Ultimately, this is a bearish market and there is no way to buy with any type of confidence, despite the fact that it has been so extraordinarily bullish in the last week and a half or so.

This article was originally posted on FX Empire

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