CRUDE OIL FORECAST: OIL PRICE VOLATILITY AMID SWINGS IN MARKET SENTIMENT CONTAINED BY KEY TECHNICAL LEVELS
- Crude oil price action has recently fluctuated back and forth within a 10% trading range
- Oil prices might revert back lower following a sharp rally that puttered out near the 50-DMA
- Market volatility and trader risk appetite stands to strong-arm the direction of crude oil
Oil prices remain volatile as the sentiment-linked commodity swings aggressively in response to changes in trader risk appetite. Crude oil price action has oscillated back and forth between critical technical support and resistance levels over recent trading sessions amid conflicting bullish and bearish headlines.
For example, fiscal stimulus negotiations, in addition to Trump health updates and election speculation, have largely caused markets to whipsaw. Reports of paused crude oil production in the Gulf of Mexico due to Hurricane Delta likely exacerbated a short-squeeze higher by oil prices, but this