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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.

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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

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