Crude Oil Price Forecast – crude oil markets continue to struggle

WTI Crude Oil

The WTI Crude Oil market initially trying to rally a bit during the trading session on Monday but gave back the gains to roll over and reach towards the $50 level again. The $50 level of course is a large come around, psychologically important figure, and if we were to break down below there the market could unwind rather drastically. I think that a lot of this comes down to worries about global demand, but I think that the $50 level is being heavily defended, so in the short term I think that you could play this market for short-term bounces. A daily close below $50 opens the door to the $54 level next though.

Crude Oil Video 18.12.18

Brent

Brent markets also continue to struggle, initially trying to rally towards the top of the wedge that we have been trading in, but then fell over to reach towards the bottom of it. We are essentially hovering around the $60 level, so I think that at this point we will continue to see a lot of back and forth. However, if we were to break above the downtrend line, the market should go higher, perhaps reaching towards the $64 level initially. A break above there could send this market looking towards the $67.50 level. The alternate scenario of course is a break down, and if we get a daily close below the uptrend line, then we could drop towards the $55 level next. Expect a lot of choppiness regardless.