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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

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.

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