Crude Oil Price Forecast – crude oil markets break serious support

WTI Crude Oil

The WTI Crude Oil market has broken down significantly during trading on Tuesday, slicing through the 61.8% Fibonacci retracement level, and the $68 level. The market simply looks very soft at this point, and I think rallies at this point should be nice selling opportunities, unless of course we can close above the 50 EMA on the daily chart. Speaking of the 50 EMA, we are starting to see a turn lower, and this is a very negative sign. As a general rule, I do not trust the 70.6% Fibonacci retracement level, so it’s very possible we may completely wipe out the entire upward move.

Brent

Brent markets broke down significantly during the day as well, slicing through the 50% Fibonacci retracement level, an area that typically attracts a lot of pressure. Now that we have broken through that, the next target will be the 61.8% Fibonacci level at the $76.91 level, but the fact that the 50 EMA is turning lower tells me that it’s likely the Brent market will behave very much like the WTI market, selling off rapidly. This is a market that should have been helped by the idea of the Iranian sanctions, but overall it’s difficult to think that it’s going to help at this point as we have broken down so much. At this point, I think the market continues to drop from here, and I think that the $80 level will now offer a significant amount of resistance above.

Oil Forecast Video 24.10.18