Crude Oil Price Forecast – Crude oil continues to face resistance

As I stated yesterday, crude oil was running into a bit of trouble just above and it does look in fact as if that prediction is going to come true. Because of this, there’s a bit of a trend line keep in the market down, and of course major moving averages.
Christopher Lewis
Crude Oil daily chart, August 21, 2019

WTI Crude Oil

The WTI Crude Oil market initially tried to rally during the trading session on Tuesday but found enough resistance near the 50 day EMA yet again to turn the market around and have it reaching towards the $55 level. This is a market that should continue to show a lot of negativity as global demand for crude oil is falling. The $55 level of course offers certain amount of psychological comfort, but I do think that we will break through it and then go down through the $54 level. At that point, I think the market probably goes looking towards the $52.50 level after that. Rallies at this point are still to be sold.

Oil Forecast Video 21.08.19

Brent

Brent markets also tried to rally during the trading session early on Tuesday but continues to find a lot of resistance above. It’s not the 50 day EMA this time, is the round figure of $60. That’s an area that of course has attracted a lot of attention in the past, offering massive support. It is now major resistance and it looks as if we are going to continue to see the market react to this level. That being the case, it looks very likely that we are going to continue to see a lot of selling, perhaps reaching down towards the $56 level. Ultimately, I believe in fading rallies over here as well, even if we can break above the $60 level, as the 50 day EMA will come into the picture and offer resistance.

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