Crude Oil Price Forecast – Crude Oil Continues to See Pressures After Jobs Report

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market fell rather hard during the trading session on Friday after the jobs number came out much weaker than anticipated. Quite frankly, a lot of traders will have been shocked by this move and with that being the case, I think you’ve got a scenario where traders are expecting less and less demand as the economy stops. I think it’s probably a little overdone, but clearly at this point, you can’t be bullish. We have tested the $72.50 level. That’s an area that’s been supported, but you would need to see some type of momentum to the upside to start buying.

Brent Crude Oil Technical Analysis

The Brent market has made the same move as you would expect, reaching down to the 76.50 level and as a result finding buyers there but we are definitely oversold at this point and a bounce could just be temporary relief we’ll have to wait and see but as things stand right now this is a very negative market and it is going to be difficult to try to start buying really at this point in time I think you’ve got a situation where traders will continue to look at the first signs of trouble as something to jump out and get out of the market.

There will be a lot of fear here, and as a result I think you have a situation where the market is going to be very tricky. Position sizing with be everything at this juncture, as we can suddenly see this market move in erratic behavior.

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