Crude Oil Price Forecast – Crude oil continues to walk along trend line

Crude oil markets rallied slightly during the trading session on Wednesday, showing signs of life again as we continue to walk along this uptrend line. By doing so, it looks as if the market is trying to save itself.
Christopher Lewis
Crude Oil daily chart, May 16, 2019

WTI Crude Oil

The WTI Crude Oil market rallied a bit during the trading session on Wednesday, showing signs of support based upon the trend line. We are also looking at a flat 50 day EMA, and therefore it looks like we are going to go higher. At this point in time, it’s likely that we will probably go looking towards the $64 level that of course is the bullish scenario, but I also believe that there is going to be a lot of resistance and that area.

Just below, I see a significant amount of support at the 200 day EMA and the $60 handle. If we were to break down below the $59 level, it’s very likely that the market will drop to the $55 level next. All things being equal though, it does look like the buyers are trying to make a bit of a stand.

Crude Oil Price Forecast Video 16.05.19

Brent

Brent markets also have been walking along uptrend line but have performed a bit better than the WTI market so you can look at this as a potential leading indicator, as it seems to be outperforming in the two markets do tend to move in the same direction overall. The $75 level above is a bit of a ceiling, so I think it’s going to be difficult to break above there. That being said, if the market breaks down below the trend line and the 50 day EMA, then it’s likely that we could drop down to the $67.65 region which is where the 200 day EMA sits.

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

Top Promotions

Top Brokers