U.S. Markets closed

Crude Oil Price Forecast – Crude Oil Markets Trying To Break Out

Christopher Lewis

WTI Crude Oil

The WTI Crude Oil market has rallied again during the trading session on Friday after forming a hammer like candle on Thursday. This shows that the market is in fact trying to break out to the upside, perhaps as it is oversold. If the situation in the Chinese mainland turns around, that should drive up demand for crude oil more than anything else. At this point, the market is likely to find plenty of buyers or at the very least a bit of short covering. If the market can close above the $52.50 level on the daily chart, then it’s likely that we could go to the $55 level.

Crude Oil Inventories Video 17.02.20

Brent

Brent markets have also rallied and tested the $57.50 level. If we can break above there, then it’s likely that the market continues to go towards the $60 level. Ultimately, this is a market that looks as if it is trying to break out to the upside, or at the very least do a bit of a short covering rally. The market will at least try to recover, and if OPEC steps in and do some type of cut, it could turbocharge a move higher. Quite frankly though, the situation in China is temporarily negative, and given enough time if they get the coronavirus contained in the mainland, as soon as China goes back to work it will drive up demand for crude oil in a massive amount. Given enough time, this is a market that should try to recover.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

More From FXEMPIRE: