Crude Oil Forecast: Looks For Buyers. Did We Find Some? Be Cautious -

Crude Oil Forecast: Looks For Buyers. Did We Find Some? Be Cautious

Nov 10, 2023Jeremy ParkinsonFinance0

Prudent position sizing is imperative given the multifaceted nature of the current landscape.

The West Texas Intermediate Crude Oil market made efforts to steady itself on Thursday amidst ongoing turbulence. While volatility remains a persistent companion, there are signs of scavenging and even potential profit-taking by short-sellers.

The prevailing market sentiment revolves around the ominous specter of an impending recession, a scenario that cannot be easily dismissed.

Given this backdrop, it is challenging to muster unbridled enthusiasm for gold. Nevertheless, a rebound appears to be on the horizon.

A descent below the $75 threshold would unquestionably signal a distressing turn of events, ushering in a potential descent towards the $72.50 mark. Conversely, an upward move could carry us to the $80 level while still remaining just beneath the 200-Day Exponential Moving Average, potentially setting the stage for a recovery bounce. Will it be a bigger deal? Only time will tell.The Brent markets also seem to be seeking some respite in Thursday’s trading session, hovering around the $80 level as buyers cautiously make their presence known. The pivotal question now is whether this signals a complete market turnaround or merely a brief interlude of profit-taking. Either way, a bounce from this juncture appears reasonable, though it’s wise not to become overly attached to the position, as market reversals can occur abruptly. A breach of Wednesday’s session lows would cast a decidedly negative shadow, potentially leading to a downturn towards the $77.50 level.Be CautiousPrudent position sizing is imperative given the multifaceted nature of the current landscape. Moreover, the geopolitical dynamics in the Middle East loom large on the oil market’s horizon. While they have yet to deteriorate further, there is no indication of improvement either. Consequently, a sudden announcement or move by a key player in the region could rapidly propel oil prices upwards by $10 in the blink of an eye.In the end, the crude oil markets are navigating choppy waters, striving to regain equilibrium amid a maelstrom of uncertainty. While signs of stabilization and potential rebounds are discernible, caution is the watchword. The looming specter of recession and the volatile geopolitical backdrop underscore the need for prudent decision-making in these volatile markets and times. I think there are plenty of reasons to think that simple supply and demand aren’t enough to give us clarity – its going to be a mess for a while. More By This Author:S&P 500 Forecast: Deals With Overextension Silver Forecast: Watches The Bullish Flag Gold Forecast: Looks To The Upside