Crude Oil Price Forecast – Crude oil markets continue to show resistance above

Crude oil markets tried to rally during the trading session on Thursday again but continue to see resistance above the 50 day EMA. The downtrend line of course continues to offer quite a bit of selling opportunities as well.
Christopher Lewis
Crude Oil daily chart, August 30, 2019

WTI Crude Oil

The crude oil market rallied quite a bit during the trading session on Thursday, but then turned around to show signs of weakness again. With that being the case, it looks as if the market is ready to go lower, perhaps trying to fill the gap underneath. Once that happens, we will be at roughly $55 and it looks like that is going to be the target. If we break down below the $55 level, it’s likely that we then go to the $53 level. The alternate scenario of course would be to break out but at this point I think it’s obvious that there is a ton of resistance just above.

Looking at the chart, it’s obvious to me that the market continues to see a lot of sellers above and I think that it’s only a matter of time before we get more of a break down and that makes quite a bit of sense considering that the global economy is slowing down. Beyond that, the US/China trade war continues, and even though we have seen the Chinese suggests they are willing to talk again, the reality is that we are a long way away from some type of true change. Beyond that, the damage may already be done to the global economy is so therefore it’s likely that there will be less demand for crude oil. Beyond that, the Americans continue to pump crude oil into the marketplace. With that, I think it’s only a matter of time before we sell off. If we broke above the $57.50 level, then it’s possible things could change. Until then I still remain skeptical.

Crude Oil Forecast Video 30.08.19

Brent

Brent markets on the other hand are forming a bit of the triangle but we still have the 50 day EMA just above causing issues. If we can stay underneath there, it’s very likely that we will continue to go lower. Ultimately, I think that the market probably reaches down towards the $57.50 level, and then possibly even the $56 level after that. Global demand simply is not there.

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