Crude Oil Price Forecast – Crude Oil Markets Breakthrough Moving Averages

WTI Crude Oil

The West Texas Intermediate Crude Oil market has broken down a bit during the trading session on Friday, slicing through the 50 day EMA to show signs of weakness. The $40 level being violated is a serious shot across the bow when it comes to the bearish pressure. I think that if we continue this downward momentum, and we should, the market is likely to go looking towards the $35 level. This will be especially true if the US dollar starts to strengthen, as it works against the value of commodities. The US dollar is oversold so it would not be a big surprise to see it recover. The candlestick closing at the bottom of the range is of course a very negative sign as well.

Crude Oil Video 07.09.20

Brent

Brent markets also look as if they are trying to break down a bit as well, as we have sliced through the 50 day EMA over there. If you can break down below the bottom of the range for the day, then it is likely that the market will continue to go down to the $40 level. At this point in time, short-term rallies are to be faded, at least until we break above the 200 day EMA which is currently at the $45.74 level. At this point in time, it is likely that we will continue to go lower, but I think that the $40 level underneath is a great target and of course will create some type of target for short-sellers and of course people trying to take profit after a massive bounce that we had seen from the $20 level.

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