WTI Crude Oil
The West Texas Intermediate Crude Oil market broke down significantly on Monday, gapping lower to show signs of exhaustion. By breaking down below the $40 level, it opened up the move to the $38.50 level. At this point in time, the market is likely to see plenty of selling pressure to reach down towards the $36.25 level underneath which has been significant support. If we can break down below there, then the market is likely to go looking towards the $35 level, possibly even the $30 level. Quite frankly, there is no demand for crude oil and Libyan output has spiked again, so that puts quite a bit of supply of petroleum into the marketplace again.
Crude Oil Video 27.10.20
The Brent market gapped lower as well, as we reached down towards the $40 level. If we were to break down below there, it is difficult to imagine how we would keep this market from falling lower, perhaps down towards the $37.50 level, maybe even down to the $35 level. This is a market that is going to be even more bearish than the WTI market, due to the fact that so many parts of the world are suffering much more than the United States as far as economic slowdowns are concerned, and that of course means that Brent comes into focus. Regardless, it does look like it is trying to lead WTI lower so I think that both of these markets will virtually selloff. Rallies are to be sold at this point at the first signs of exhaustion, especially near the 50 day EMA.
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This article was originally posted on FX Empire