Crude Oil Price Forecast -Crude oil markets collapse

Crude oil markets got absolutely hammered on Thursday, breaking major support in the form of the longer-term trend lines. Because of this, it looks as if the trend is changing before our very eyes.
Christopher Lewis
Crude Oil daily chart, May 24, 2019

WTI Crude Oil

The WTI Crude Oil market fell out of bed during the trading session on Thursday to slice through the uptrend line and break through the $60 level. Now that we are below the 200 day EMA, it’s very likely that we are going to continue to see trouble, and then trouble should continue to send this market much lower. Ultimately, I believe that the market is ready to break much lower, and I think at this point rallies are to be sold. It’s not until we break above the previous uptrend line that you can consider buying this market, but quite frankly I don’t see how that happens in this environment. Oil has just become bearish.

Crude Oil Forecast Video 24.05.19

Brent

Brent also collapsed, slicing through the 200 day EMA. There will almost undoubtedly be some type of short covering or pushback in this move, but it certainly looks as if the overall trend has changed. Just as I believe in the WTI Crude Oil market has reversed the overall trend, I believe that the Brent market has as well. With this, it’s very likely that the market will continue to offer plenty of opportunities, and that we may get the sudden jolt slower occasionally that will break this market down. At this point, it’s very likely that Brent goes looking towards the $65 level underneath. The candle stick that formed on Thursday is a major turn of events that should be paid attention to. There are inflection points in the markets occasionally, and Thursday was certainly one of those times.

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