Crude Oil Price Forecast – crude oil continues to press major resistance

Crude oil markets continue to press against a major resistance barrier, and although we have failed to break out above the neckline of the inverted head and shoulder pattern is that we have on both grades of crude oil, it looks as if we will continue to test that level.
Christopher Lewis
Crude Oil daily chart, February 04, 2019

The WTI Crude Oil

The WTI Crude Oil market initially fell during the trading session on Friday but turned around and bounce from the 50 day EMA to show a supportive candle. We had tried to break above the $55 level but could not close above it on Thursday. Eventually, we will either break the top of the shooting star from Thursday or get a daily close above the $55 level, and send the market looking towards the 200 day EMA above. Short-term pullbacks continue to offer buying opportunities, especially near the 50 day EMA and perhaps even the 20 day EMA. This market has tried to form an inverted head and shoulders, and right now we’re just waiting to see if it kicks off. I am a buyer on the break out.

Crude Oil Inventories Video 04.02.19

Brent

Brent markets initially fell during the trading session again on Friday but bounced from the 20 day EMA to form a bit of a hammer like candle. The neckline of the inverted head and shoulders just above, currently at the $64 level, has yet to be broken but I think eventually we will see that market give way and allow the market to reach towards the 200 day EMA. Ultimately, if we break down below the $60 level, it’s very likely that the market will roll over towards the $55 level. That being said, it certainly looks as if the buyers are aggressive and I do think that eventually they win the day. This will be especially true if the US dollar continues to soften overall.

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