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

Crude oil markets as you can see on the daily charts continue to see sellers, as we have completely broken down. Quite frankly, I think the bearish pressure and the bearish move has been bigger than what we expected.
Christopher Lewis
Crude Oil daily chart, December 21, 2018

WTI Crude Oil

The WTI Crude Oil market fell right off the bat during the trading session on Thursday, then continues to a fresh, new low. Ultimately, the $50 level above looks very likely to be resistance, just as the $45 level is support. Ultimately, I think that every time we rally, you should be looking for selling opportunities on short-term charts. If we do break down below the $45 level, then I think the market could go down to the $40 level next. Expect a lot of volatility, especially as liquidity drives up towards the end of the year.

Crude Oil Forecast Video 22.12.18

Brent

Brent markets continue to struggle as well, as we reached down towards the $55 level. If we can break down below the $55 level, then the market will probably continue down to the $57.50 level, and then possibly even the $50 handle after that. Rallies at this point will continue to show signs of exhaustion near the $60 handle. Ultimately, I think that rallies are not to be trusted, as crude oil markets have been sold off so drastically. I think at this point, we are probably going to eventually see the $50 level, but it’s going to take some time to get there. Based upon the wedge that we have broken through, it’s very likely that the $50 level is the technical target. If we break above the $62.00 level, then it’s likely that we could go towards the 50 day EMA to the upside. However, selling pressure is crushing at the moment.

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