Crude Oil Forecast: Markets Get Crushed on Wednesday

The WTI Crude Oil market took a big hit in Wednesday's trading session, as the market starts to price in just how bad the global recession could be. With the demand for crude oil expected to be anemic, the market has plunged well below the $70 level during early trading, and there are fears it could drop even further.

The last couple of candlesticks have been brutal, and traders are waiting for a certain amount of value hunting or short covering to take profit. However, this opportunity could take some time to materialize, and traders will need to be patient to realize the trading opportunity.

The 50-Day EMA has offered a significant ceiling, and it is expected to continue to do so on any bounce. Traders should watch for this level, as it could provide resistance in the short term. In fact, I would even be surprised to see it challenged any time soon as the move has been so strong.

Demand for Crude Oil is Expected to be Weak

• Similarly, the Brent market has also taken a hit, with the contract heading towards the $70 level.
• The recent noise in the market and concerns about the global economy have made traders cautious about buying into the market.
• The 50-Day EMA is expected to be a ceiling in terms of technical analysis, and if the market drifts below the $70 level, things could get rather ugly.

Despite OPEC cutting 1.6 million barrels from production each day, there is little catalyst to buy into the market now. This suggests that OPEC knows that demand is going to be weak, and traders should be wary of making any significant bets on the market.

At the end of the day, the WTI Crude Oil market and the Brent market have both taken a big hit in recent trading sessions, with concerns about the global economy weighing heavily on traders' minds. The demand for crude oil is expected to be weak, and traders should be patient in waiting for any trading opportunities. The 50-Day EMA is expected to provide resistance in the short term, and traders should watch for any break below the $70 level, which could signal further declines. Despite OPEC's production cuts, there is little catalyst to buy into the market now, and traders should be cautious in their approach.