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Crude Oil Price Forecast – Crude oil markets continue to be very noisy

The crude oil markets have been very noisy as of late, and as a result it’s very likely that we will continue to go back and forth quite violently. Looking at this market, it’s very likely that we see a lot of trouble determining the trend in the short term.
Christopher Lewis
Crude Oil daily chart, August 22, 2019

WTI Crude Oil

The WTI Crude Oil market initially shot higher during the trading session on Wednesday, breaking through a downtrend line that I have marked on the chart. At this point, the $57.50 level above is massive resistance, and I think that area will continue to cause a lot of issues just as the downtrend line will. At this point, I think we are trying to figure out where to go next, so this is rapidly becoming more of a binary trade in the sense that if we can break down through the hammer from the previous session, then it’s a very negative sign. Alternately, if we can break above the $57.50 level, then it’s a positive sign and could send this market looking to finish the longer-term consolidation to the $60 handle.

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Crude Oil Price Forecast Video 22.08.19

Brent

Brent markets rallied during the trading session as well, reaching towards the crucial $61 level. This is an area that has offered resistance a couple of times recently, and of course we are starting to get somewhat close to the 50 day EMA. With that in mind I suspect we may see a little bit of a pullback but keep an eye on both of these charts. Typically, one of them will lead the other one, give you new a “heads up” as to which direction the entire market should go. All things being equal I believe that the market will continue to perceive the lack of demand globally as a major headwind.

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