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Christopher Lewis
Crude Oil Price Forecast - Crude Oil Markets

WTI Crude Oil

The West Texas Intermediate Crude Oil market broke down below the $55 level, which is the bottom of the hammer from the trading session on Thursday. That being the case, the market looks likely to reach towards the $52.50 level underneath, which is extending all the way down to the $50 level. All things being equal, we are oversold so it would not be a huge surprise to see this market bounce from this general vicinity to turn around and stay within the overall consolidation area. Otherwise, the $50 level underneath being broken could unleash this market to go down to the $45 level.

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Brent

Brent markets also have broken down rather significantly, reaching towards the $60 level. There is a significant amount of support at the $57.50 level, and we are oversold over here as well. We are still well within the consolidation area, so until we break out of it you have to assume that things will remain the same. If we do break down, then the $55 level will be targeted, followed by the $52.50 level. All things being equal though, it would make quite a bit of sense to see this market turn around and bounce back towards the 50 and 200 day moving averages in the middle of the overall range. Pay attention to the US dollar, if it loses a little bit of strength, we could see a bit of a bounce. In the meantime, though, wait for signs of a bounce, and the fact that the Friday candlestick is closing towards the very bottom of the range suggest that you may have a day or two to wait.

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