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Christopher Lewis
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Crude Oil daily chart, June 06, 2019

WTI Crude Oil

The WTI Crude Oil market fell rather significantly during the trading session on Friday, reaching down towards the $50 region. We turned around to show signs of life and suggest that perhaps there is quite a bit of support at the $50 handle. At this point, I suspect that a bounce makes sense, even though we are seeing the so-called “death cross” forming on the daily chart. I would mention that any time this happens, you are closer to the end of a downtrend than the beginning. However, if we break down below the $50 level, that opens up the door down to the $42 level.

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Crude Oil Price Forecast Video 06.06.19

Brent

Brent markets broke below the psychologically significant $60 handle, but then bounced enough to show signs of life again. At this point, it looks very likely that the market continues to go back and forth, showing signs of consolidation. It’s very likely that we will continue to see selling pressure, but a short-term bounce would make quite a bit of sense. The $62.50 level above is resistance, so I think that short-term rallies towards that area will probably be sold into. If we break above there though, then the market could go to the $65 handle.

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Otherwise, if we break down below the bottom of the candle stick for the trading session on Wednesday, then we could go down towards the $57.50 level, then perhaps the $55 level after that. Markets are oversold, but I think rallies will continue to be sold into and that’s probably the best play.

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