Crude Oil Price Forecast – Crude Oil Markets Continue to Plow Lower

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has broken down significantly during the session on Monday, as we continue to see a lot of negativity throughout the economic markets. If we continue to see a lot of concerns about growth or a potential global recession, it makes perfect sense that the crude oil markets will take it on the chin. With that being the case, then it’s likely that we will see sellers come in on short-term rallies, and the 200 Day EMA above should probably be paid close attention to, currently sitting just underneath the psychologically and structurally important $95 level.

Crude Oil Prices Forecast Video for 16.08.22

Brent Crude Oil Technical Analysis

Brent markets have fallen as well, breaking below the $95 level. It looks like the market is still trying to figure out what to do with itself, but the $90 level underneath looks to be a very stringent support level. If we were to break down below that level, things could get rather ugly. A breakdown below the $90 level probably kicks off a major selloff, perhaps driving Brent down to the $80 level.

On the upside, the $100 level will more likely than not cause a bit of the resistance barrier, especially with the 50 Day EMA coming into the picture at the $102.67 level and dropping. Because of this, I think the market is more likely than not going to continue to see plenty of selling pressure over the longer-term, and therefore I would continue to fade rallies, but also recognize that crude oil is a very noisy market under the best of circumstances, so you need to be cautious with your position size.

For a look at all of today’s economic events, check out our economic calendar.