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Crude Oil Price Forecast – Crude oil markets break trendline

The crude oil markets rallied a bit during the trading session on Monday, testing major resistance barriers. At this point, we could be on the verge of a pop higher, but we also could see this market fall right back down.
Christopher Lewis
Crude Oil daily chart, September 10, 2019

WTI Crude Oil

The WTI Crude Oil market has broken through a downward trending channel and peeked through the 200 day EMA. At this point, if we can break above the high for the day, then the market is very likely to go towards the $60 level. On the alternate scenario, if we were to turn around and fall from here we are going to simply stay between the $55 level on the bottom and the $58 level to the top. I expect a three-pointer zero dollars range to hold in the short term, but clearly we are building up a lot of pressure and it looks like it could be ready to head towards the upside.

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Crude Oil Video 10.09.19

Brent

Brent markets also rallied a bit during the trading session, breaking above the $62.50 level. At this point it looks very likely that we are going to go to the $65 level, but even more importantly we broke above the top of a shooting star from a couple of days ago. That tells me that it’s time for this market to rally and I think it will go looking towards the 200 day EMA above. Pullbacks at this point are probably going to be supported, but keep in mind that it is going to be very noisy. There is a serious concern about the global demand picture right now, so I think that the 200 day EMA above will cause some issues but in the short term it certainly looks as if we are going to go higher.

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