Crude Oil Price Forecast – Crude oil markets continue to show weakness

Crude oil markets continue to struggle overall, as the markets show signs of failure every time we try to rally. There is a downtrend line that the markets continue to test and fail at.
Christopher Lewis
Crude Oil weekly chart, August 26, 2019

WTI Crude Oil

The West Texas Intermediate crude oil markets continue to struggle every time they rally, and the weekly candle stick looks terrific. Out of the last four candlesticks, three of them have been shooting stars. Granted, one of them was a hammer but obviously the sellers are winning the argument here. Because of this it looks very likely that the market is going to continue to go much lower, perhaps down to the $50 level. Ultimately, if we did break above the candle stick from the past couple of weeks, that would be a very bullish sign and could send this market towards the $60 level. With the lack of global demand though, it seems very unlikely that we see that happen.

Crude Oil Inventories Video  26.08.19

Brent

Brent markets tried to rally during the week as well, and unlike a downtrend line in the WTI market, we have a horizontal support and resistance level that is offering resistance. At this point, it looks as if we cannot hang above the $60 level, so I think it’s a simple matter of selling every time it rallies until proven otherwise. The downside should include the $55 level, possibly even the $50 level. All things being equal, I think you should continue to see weakness in this market as global demand continues to slow down and of course we have the trouble with the trade war expanding, so that of course is going to continue to cause a lack of demand for petroleum as shipping is slowing down globally.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US