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Christopher Lewis
Crude Oil daily chart, December 26, 2018

WTI Crude Oil

The WTI Crude Oil market initially tried to rally during the trading session on Monday, but then turned around to show signs of falling yet again. We even managed to peek below the $45 handle, which of course is a large come around, psychologically important figure. Now that we have bounced back above there, it’s likely that the market will continue to show at least some resiliency, because we are most certainly in an oversold condition. However, I look at this as an opportunity to sell on the bounce, with the $50 level above being a ceiling at the moment.


Crude Oil Video 26.12.18


Brent markets also tried to rally at one point but failed at the psychologically important $55 level. This looks like we are going to continue to go lower, perhaps reaching down to the $50 handle after that. The $60 level above there is also the “ceiling” in the market, as it is in a major downtrend, and we have of course sold off rather drastically. I think it’s going to take a lot to change the overall attitude of the market so look for short-term rallies to sell over here as well. The 50 day EMA is still dynamic resistance, and it is all the way up at the $65 level. Ultimately, with the trajectory of the 50 day EMA and the ferocity of the selloff, I think that this market is going to struggle. Beyond that, global demand seems to be shrinking as well.

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