Crude Oil Price Forecast – Crude Oil Markets Break Down

WTI Crude Oil

The West Texas Intermediate Crude Oil market broke down a bit during the trading session on Wednesday, slicing through the $57.50 level, an area that I had pointed out as support. Now that we are below there, it’s very likely that the market continues to go much lower, perhaps even down to the $55 level. A serious lack of demand is going to continue to work against the value of crude oil, thereby sending it much lower. The $55 level should continue to offer plenty of support but breaking down below there is a possibility and we could very well break down towards the $52.50 level next. Ultimately, this is a market that will see sellers pile on to larger position.

Crude Oil Price Forecast Video 23.01.20

Brent

Brent also has broken down during the trading session on Wednesday, slicing through the 200 day EMA. By doing so, I believe that this market probably goes looking towards the $62.50 level, and then eventually the $60 level. Longer-term, I don’t necessarily think that this market will break through the bottom of the range of the $57.50 level, and that we are simply going back and forth in the same range that we have been in for ages now. This is a simple continuation of what we have seen, and therefore although very bearish, it’s not necessarily something that we should be overly concerned about. Because of this, the market is very likely to see a lot of choppiness but most certainly a downward momentum move from here. The candlestick is of course very negative and now that we have made a “lower low”, that will drive more money to the downside at least in the short term.

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