Crude Oil Price Forecast – Crude oil markets continue volatile action

WTI Crude Oil

The WTI Crude Oil market gapped lower to kick off the week, but then after a short pullback rallied significantly to reach above the $55 level. We have since then rolled over again, and now it looks like we are trying to rally yet again after that. In other words, and to be more direct, this is a market that is all over the place. There is a lack of liquidity as this is the last week of summer break for most traders, and therefore it makes quite a bit of sense that we will struggle to find directionality. All things been equal though, this is a market that deftly seems like it’s in a bit of a negative trend, as seen by the downtrend line drawn on the chart that coincides nicely with the 50 day EMA.

Crude Oil Video 27.08.19

Brent

Brent markets also gapped lower to kick off the session and have also ran into significant resistance above after trying to recover. That resistance barrier was the psychologically important $60 level, and therefore it’s likely that we will continue to see that level act as important selling pressure. I like the idea of fading rallies, and I do think that Brent markets will go looking towards the $55 level underneath. Even if we do break out to the upside, the downtrend line and the 50 day EMA which is presently dancing around the $62 level, should be a nice selling opportunity. I have no interest in buying crude oil, because quite frankly global demand doesn’t suggest we should be.

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