WTI Crude Oil Forecast: Plunges

• The West Texas Intermediate Crude Oil market has plunged lower during the trading session on Wednesday to reach down toward the $86 level.
• At this point, it looks like oil has blown it as far as the uptrend is concerned, especially as we are now below the 50-Day EMA.
• At this point, the market looks to raise their babies trying to form some type of basing pattern, but it clearly has seen a complete turnaround during the last couple of days.

Advertisement

Take advantage of today's Crude Oil movements

Trade Now

If we were to break down below the $86 level, and I do think that could happen quicker than most people think, this is a market that could drop all the way down to the $80 level. There are a lot of questions now as to what demand is going to be like, as the global economy continues to get punched in the face. The demand for crude will go up and down with the possible slowdown, and therefore a lot of people are going to pay attention to various economic indicators to get a feel for whether economies will be growing, or if they are going to be slowing.

Waiting for the CPI Numbers

At this point, it looks very likely that we are going to continue to drop from here, considering that we just ended up forming a bit of a “double top.” That double top has also hit the 200-Day EMA, so that in and of itself probably has a lot of people looking to the downside. The $80 being tested could be a sign as to whether we are going to continue to fall, or if we are going to enter some type of range. I think the CPI numbers will have a lot to do with what happens next as well, because the Federal Reserve and its actions will obviously have a lot to do with what happens with global growth, and of course demand.

I think it all more likely than not will look to the downside since the economy around the world continues to struggle, even though OPEC had cut 2 million barrels. That might be the one thing that gives this market a little bit of a floor, as obviously supply and demand come into the picture when it comes to energy.

Ready to trade our WTI Crude Oil analysis today? We’ve made a list of the best Forex Oil trading platforms worth trading with.