Crude Oil Price Outlook – Crude Oil Continues to Plunge

WTI Crude Oil Technical Analysis

The light sweet crude oil market fell pretty significantly during the trading session on Wednesday to threaten the major support level that I think a lot of us will continue to watch in general. With that being the case, I think you have to accept the fact that perhaps the crude oil market just can’t be traded right now.

There is an argument to be made for this and I do think that traders will probably continue to assume that the recession, of course is going to be a major problem, but sooner or later one would expect there’s a bounce. So, I am definitely watching this market but in the last couple of days I’ve even suggested that we might have a bit of a bounce, but we just don’t have the momentum.

Brent Crude Oil Technical Analysis

The Brent markets look very much the same as we are breaking through the $70 level, the $70 level, of course, is an area that we need to pay close attention to. And therefore, we are plunging in this area. I think you have a situation where a little bit of a bounce could come, but again, we didn’t get the follow through to break above the top of the hammer.

So again, you just want to stand on the sidelines and let this thing fall until it stops falling. Demand will pick up later this year. So, I do think that we are getting closer to the end than not, but I don’t need to be the first trader to jump in and start buying hand over fist in a market that’s been plunging for some time.

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