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Crude Oil Price Forecast – Crude Oil Markets Reach Towards Gap Again

Christopher Lewis

WTI Crude Oil

The West Texas Intermediate Crude market has initially tried to rally during the trading session on Monday but then gave back the gains to only turn around and show so much in the way of confusion. Ultimately, we are going to have to pay attention to the situation with whether or not we get a continuation of production cuts, something that is being talked about by Russia and OPEC. In general, this is a market that I think continues to see a lot of confusion and noise. However, there is a gap above that extends all the way to the $41 level that could come into play and therefore it is likely that we will try to get there eventually.

Crude Oil Video 02.06.20

Brent

Brent markets have initially tried to rally but then pulled back just a bit in order to show signs of exhaustion. That being said, I think the 50 day EMA underneath should offer plenty of support and likely what we will do is then see value hunters come back into the situation. With that, I think that is probably the best way to trade this market. However, if we can break above the $40 level, then the market goes looking towards the $45 handle it is likely to fill the gap. The market has a lot of noise baked into it, and I think that continues to be the way this market goes, simple and noisy choppiness ahead. Given enough time though, we could get a bit of clarity and once we do perhaps, we have a better shot at trading it.

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This article was originally posted on FX Empire

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