Crude Oil Price Forecast – crude oil markets extraordinarily volatile on Tuesday
The WTI Crude Oil
The WTI Crude Oil market has been extraordinarily volatile during the trading session on Tuesday, reaching down towards the $70 level after initially going as high as $71.40 during Asian trading. This is an extraordinary turnaround, and it shows just how volatile and dangerous this market can be. That being said, I think the $70 level could offer a bit of psychological support, and most certainly there is support at the $69.50 level. I think there will be a nice opportunity to go long eventually, but at this point the market is far too unstable to take a chance on that.
Your capital is at risk
Brent
Brent markets did the same thing as you would expect and have completely collapsed later in the day. The question now is whether or not the $78 level can hold as support. If it can, then that’s a very bullish sign. Otherwise, I think that the market could find itself down at the $77.50 level without much trouble. Ultimately, this is a market that will continue to be very noisy, as we have headwinds of global growth, hurricane, and of course the US dollar. Expect a lot of noise, and therefore you may wish to keep your position size very small if you feel inclined to trade this market, which by all means if it makes you nauseous because of the volatility, you shouldn’t be involved at all. I do think that the buyers will return, but let the market stabilize before you put any serious money to work.