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Crude Oil Price Forecast – Crude Oil Markets Continue to Reach Towards Gap

Christopher Lewis
·2 min read

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied during the trading session on Friday in response to a strong jobs number coming out the United States. That being the case, the idea of demand for crude oil increasing seems to be a little bit more believable. At the end of the day though, there is still a lot of concerns when it comes to demand, but with the increase in production cuts surely coming from OPEC, it continues to push this market to the upside, at least in the short term. It is a technical move regardless, as filling the gap is quite often how traders play this.

Crude Oil Video 08.06.20

Brent

Brent markets have also rallied, finally breaking above the $40 level. With that in mind, Brent is highly likely to fill the gap above, which is at roughly $45. At this point, I believe that area probably offers quite a bit of resistance, but it certainly makes a nice target to “fill the gap” which of course is common in the futures market. Obviously, the cutback in production by OPEC will have its influence as well, so I do think that it is only a matter of time before we get to that level.

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As far as being able to break above there, that is a completely different story. Breaking above the $40 level is of course a very bullish sign, one that I have been talking about for several days now. With this, it looks like the momentum continues higher. The gap extends all the way to the 200 day EMA and both markets that I cover, so it is a nice confluence of resistance.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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