WTI Crude Oil
The WTI Crude Oil market rallied a bit during the trading session on Wednesday, but we still have a major barrier in the form of $50 just above. Beyond that, I think that there is plenty of resistance extending all the way to the $55 level. Quite frankly, the best way to trade this market is to simply wait for signs of exhaustion that you can start selling again. I think the longer-term fundamental situation is horrible right now, and if the global economy is starting to struggle, it looks very likely that the crude oil markets will suffer.
Crude Oil Price Forecast Video 20.12.18
Brent
Brent markets also rallied a bit but I think there is a significant amount of resistance between here and the $64 level, so I think it’s only a matter time before the sellers come back. I’m looking for signs of exhaustion to take advantage of, as we have a definitive downtrend going. If we do break above the $64 level, or for that matter the $55 level in the WTI grade, then we could see markets rally significantly. However, it seems very unlikely to happen in the short term, so I think fading the rally will continue to work through the end of the year.
