Crude Oil Price Forecast – Crude Oil Markets Show Slight Positivity
WTI Crude Oil
The West Texas Intermediate Crude Oil market initially pulled back during the day on Friday but found enough support just below the $40 level to continue to show signs of life again. Given enough time, I do think that this market needs to make a bit of a decision, with the $43.50 level offering a nice target, and a massive amount of supply likely being a target. If we break down below the bottom of the hammer from the Thursday session, then it is likely that we go towards the $37 level underneath. All things being equal, this is a market that continues to be very choppy and heavily influenced by the US dollar.
Crude Oil Video 19.10.20
Brent
Brent markets pulled back slightly during the trading session on Friday but found support underneath the 50 day EMA. This is a market that I think continues to be very noisy and influenced by not only the US dollar, but the fact that demand is still iffy at best. With that being the case, I think that we will see a lot of noise, and therefore I think we need to figure out whether or not we are ready to make a bigger move. I suspect that we are not, so look for a lot of short-term back-and-forth trades.
With this being the case, the market is likely to see a lot of choppy in decision, but that has been the case for quite some time. If we were to turn around and fall, the $40 level should be massive support. Clearing that level to the downside would have the market falling apart.
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This article was originally posted on FX Empire
