Crude Oil Price Forecast – Crude oil markets fell at resistance

The crude oil markets try to rally during the trading session on Friday but have rolled over at significant resistance. That being the case, it looks likely that the market is going to continue to try and figure out where to go next.
Christopher Lewis
Crude Oil daily chart, May 20, 2019

WTI Crude Oil

The WTI Crude Oil market has initially spiked higher during the trading session on Friday, as we reached towards the $63.66 level. This is an area that the market broke down from previously, and now that we have rolled over from here it looks like we aren’t quite ready to break out to the upside. That’s not a huge surprise though, because quite frankly the market has been somewhat range bound with the exception of the last couple of days lately. We are starting to question the US/China trade situation, so that of course will cause questions about the global demand.

Brent

Brent markets also tried to break above significant resistance, and even did it one point. However, we have found the area of $72.50 to be a bit resistive. At this point, it looks like we’ll probably pull back to try to find buyers at lower levels, perhaps supportive area such as the uptrend line underneath. I’m not willing to sell this market, I just think that may be stepping away from it ahead of the weekend makes a lot of sense, and perhaps looking for value going into next week is the viable game plan.

However, if we were to break down below the $69.50 level, then we start to wonder whether or not this is in the beginning of a “lower high.” If that’s the case, markets could go much lower and it could start something very ugly. This is why the uptrend line is so important.

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