Crude Oil Price Forecast – Crude Oil Markets Have Another Brutal Day

West Texas Intermediate Crude Oil

The WTI Crude Oil market has broken down again during the trading session on Wednesday, slicing through the $25 level, something that is quite remarkable to say the least. Ultimately, this is a market that eventually will attract buyers but at this point people are worried about the oversupply and the obvious lack of demand due to the virus shutting everything down. Given enough time, I fully believe that this market will recover but we are a long way from that happening. If that’s going to be the case, longer-term traders will be looking for value at round figures such as the $25 level which has shown itself not to be where the buyers return. Short-term rallies can be sold into by the majority of traders but be aware the fact that even in the worst of bear markets you can get massive bear market rallies that shoot straight up in the air.

Crude Oil Video 19.03.20

Brent

Brent markets are actually doing a bit better, bouncing a bit from the lows, but are still below the $30 level. At this point, the market is very likely to continue to see sellers on rallies, even though we are starting to show a little bit of resilient behavior. I believe that the $30 level will offer resistance, and most certainly that $34 level will. A breakdown below the bottom of the candlestick opens up the door to reach towards the $25 level and perhaps even below there. Crude oil will eventually be a value to pick up, but it’s clear that it is not right now.