Crude Oil Price Forecast – crude oil markets break down a bit

Crude oil markets broke down a bit during the trading session on Thursday, showing signs of momentum running out. This could end up being a decision-making trading session, as we have several different important levels around us.
Christopher Lewis
Crude Oil daily chart, February 08, 2019

WTI Crude Oil

The WTI Crude Oil market initially tried to rally during the trading session on Thursday, but then fell rather hard to slice through the 50 day EMA and the 20 day EMA. That being the case, we are testing pretty significant support, and I think we could very well have a lot of volatility in this area, and perhaps go looking as low as $50 for a returned. However, I’m the first to admit that this is a bit concerning for the bulls, so unless we break above the 50 day EMA by the end of the session, it looks as if we will probably at the very least start to drift a little bit lower.

Crude Oil Price Forecast Video 08.02.19

Brent

Brent markets also pulled back rather significantly, slicing through the 50 day EMA. There is support a little closer in this market, but I think that the overall attitude of crude oil has shown itself to be rather stagnant in this region, and quite frankly we have shown so much in the way of tenacity to go higher but have yet to produce results that I believe that the buyers are starting to become a bit disheartened. If we break down below the $60 level in this market, that could kick off negativity in this market to send it lower. At this point, I don’t know that I want to buy Brent quite yet, but I do recognize that there is support underneath so there is the possibility that we can find reasons to go long.

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