Crude Oil Price Forecast – crude oil markets continue to grind sideways

Crude oil markets did very little during the day on Friday, as we continue to go sideways in general. It looks as if we are pressing a major resistance and support barrier, but both grades that we follow look as if they are trying to form an inverted head and shoulders pattern.
Christopher Lewis
Crude Oil daily chart, January 28, 2019

WTI Crude Oil

The WTI Crude Oil market has risen slightly during the trading session on Friday as we continue to go sideways in general. I believe the $55 level above is massive resistance, and if we can break above that level we could go much higher. The initial target would be $57.50, which should be significant resistance based upon the candlestick the sentence into this area, but I believe that we also go towards the $60 level next. There is the sign of an “inverted head and shoulders”, meaning that we could have a much larger move ahead of us. However, if we break down below the $50 level it would completely negate that pattern.

Crude Oil Inventories Video 28.01.19

Brent

Brent markets went back and forth during the day, forming a slightly positive candlestick. We are currently between the 20 day EMA and the 50 day EMA on the chart. The $64 level above is massive resistance, so if we can break above there I think it opens the door for a couple of dollars. This would also form an inverted head and shoulders, so I think we could have a move all the way to the $80 range. Overall, I am bullish because we have broken through a major downtrend line, but we need to see momentum pick up to the upside to start buying. Until then, I’m probably going to be on the sidelines when it comes to the Brent market.

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