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Crude Oil Price Forecast – Crude oil markets continue to see back and forth

By:
Christopher Lewis
Updated: Aug 2, 2019, 17:59 UTC

The crude oil markets continue to be very noisy, as we did shows some type of stability. At this point, it looks like we might be forming a little bit of a harami.

Crude Oil Price Forecast – Crude oil markets continue to see back and forth

WTI Crude Oil

The West Texas Intermediate market gapped a little bit higher during the trading session on Friday, breaking above the $55 level. It did form a little bit of a so-called “harami” candlestick, which is in theory bullish. If we can break above the top of it I think will probably go looking towards the top of the very negative candle stick from Thursday. That being said though, the 50 day EMA is right there as well, so I believe it’s only a matter of time before the sellers would come back. I anticipate a lot of choppiness, so you probably need to drill down to hourly charts or perhaps even lower. A little bit of a bounce makes sense, but I do think the alternate scenario is that we break down below the very bearish candle stick from Thursday, which would send this market looking towards the $51 level.

Crude Oil Inventories Video 05.08.19

Brent

Brent markets also formed the same type of candlestick, but the Brent market is a little bit more clear in its intentions. If we can break down below the $60.00 level, then I think the market reaches down to the $55.00 level. To the upside, the 50 day EMA is just below the $65.00 level overhead, and that could offer a significant amount of resistance. Simply put, if we can break above the top of the candle stick during the trading session on Friday, then we could reach towards the 50 day EMA. However, if we break down below the $60.00 level, then it becomes a much more significant selling opportunity.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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