Crude Oil Price Forecast – Crude oil markets break down trendline

Crude oil markets rallied a bit during the trading session on Thursday, it going against the grain and breaking through a downtrend line as a bullish inventory number out of the United States was released.
Christopher Lewis
Crude Oil daily chart, September 06, 2019

 WTI Crude Oil

The West Texas Intermediate Crude Oil market broke higher during the trading session, slicing through the downtrend line that has been such a major feature of this market for so long. However, we are starting to see the market pushed back through that downtrend line so it’ll be interesting to see how this plays out. The 200 day EMA is just above, and that of course will cause some issues as well. Ultimately, the market will make quite a bit of a distinction as to which direction we go after the jobs number on Friday, so keep that in mind as well. There will be a lot of volatility, but obviously there’s a lot to go over in the short term.

Brent

Brent markets also broke out to the upside, slicing through the downtrend line and even the 50 day EMA. By doing so, it’s very likely that this market could continue to go higher but we need to clear the $62.50 level to go higher. The 200 day EMA would be the next target, which of course is marked as blue on the chart. The $60 level underneath will cause support, so if we were to break down through there, the market could go much lower, perhaps down to the $57.50 level. At this point, it looks as if Brent will continue to climb, based upon the massive amount of momentum to whom entering the market. With the United States and China ratcheting down tensions, it looks like a short-term pop is coming.

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