Crude Oil Price Forecast – Crude Gets Hit Again With Lowering Tensions

The crude oil markets broke down a bit during the trading session on Monday, reaching towards the middle of the overall range in both grades that I follow here at FX Empire.
Christopher Lewis
Crude Oil Price Forecast - Crude Gets Hit Again With Lowering Tensions
Oil pumps

WTI Crude Oil

The West Texas Intermediate Crude Oil market broke down a bit during the trading session on Monday to kick off the week, and more importantly broke down below the bottom of the hammer from last week after the massive selloff. By doing so, the market has reached towards the 200 day EMA, which is just above the $57.50 level. There should be a certain amount of support here though, because it is in the middle of the larger consolidation range that we are in. If we do break down below that level and close below there on a daily candlestick, it’s very likely that the market goes looking towards the $55 level, possibly even the $52.50 level.

Crude Oil Video 14.01.20


Brent markets also have broken down through the 50 day EMA and of course the bottom of the hammer from Thursday. As I record this video, we are testing the 200 day EMA, but if we break down through the 200 day EMA it’s likely that we could go to the $62.50 level. If we can break down below that level, then it’s very likely that the $60 level will be tested next, and then possibly the $57.50 level. With the Americans and the Iranians cooling-off tensions, it does drive down the price of crude oil, as there is still a significant amount of concern when it comes to demand. That being said, if the market was to break above the top of the hammer from the Thursday session, then we probably test the $67.50 level next. Crude oil does look very vulnerable at the moment though.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.