Crude Oil Price Forecast – Crude oil markets continue to struggle at resistance

Crude oil markets tried to rally during the trading session on Tuesday, but it is looking very likely that we are going to continue to see a lot of selling just above. If that’s going to be the case we may be trying to carve out another short-term range.
Christopher Lewis
Crude Oil daily chart, May 22, 2019

WTI Crude Oil

The WTI Crude Oil market tried to rally during the trading session on Tuesday, reaching towards the $63.66 level before selling off again. At this point, it’s very likely that the market will continue to drift just a bit, looking for support underneath. That being the case, it’s very likely that the buyers underneath could show back up in the market closer to the $61 level, just as there are plenty of sellers above that extend all the way to the $65 level. This means we should expect a lot of back-and-forth choppy trading conditions, as global growth has a lot of people concerned right now.

Oil Forecast Video 22.05.19

Brent

Brent markets initially tried to rally as well, but then rolled over during the trading session. This of course suggests that we are getting ready to roll over towards the uptrend line underneath. If that’s the case, we probably have another day or two of selling before the buyers come back. The 50 day EMA sits just below the uptrend line and hangs about the $70 level. I think there is plenty of support in that area so it’s only a matter of time before the buyers come back. If we do break down below there, then I suspect the next target will be $60.50 underneath. We are still in and uptrend, but certainly look as if we are starting to soften a bit at this point in time.

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