Crude Oil Price Forecast – Crude Oil Markets Break DownCrude oil markets got absently crushed on Monday, slicing through the 50 day EMA. The market looks very vulnerable to further pressure.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has broken down significantly during the trading session on Monday, slicing through the 50 day EMA and of course the $40 level. At this point, the market looks as if it is ready to go back towards the lows again, which is closer to the $37 level. Short-term charts continue to favor shorting long wicks to the upside, and that is how I am going to go into this market. I have absolutely no interest in buying oil, and of course the fact that the US dollar has strengthened is only increasing this massive negativity.
Crude Oil Video 22.09.20
Brent markets also broke down significantly, slicing through the 50 day EMA during the trading session, and reaching towards the $41 level. Ultimately, I think that the market is ready to go down to the $40 handle, and if we sliced through their it is likely that the market then goes looking towards the $35 level. Short-term rally should be selling opportunities, just as they will be in the WTI Crude Oil market. All things being equal, the market is well below the 200 day EMA as well, which has offered significant resistance. I feel at this point in time that the sellers have made a definitive statement on Monday and will continue to pressure this market lower. If the US dollar continues to strengthen, that will of course continue to pressure this market as well. At this point, it looks like that is very likely to happen.
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