Crude Oil Price Forecast – Crude oil markets gap higher

Crude oil markets gapped higher to kick off the trading session on Thursday, and then rotated in a relatively tight range. At this point, I believe that the market is probably going to continue to show signs of choppiness and volatility.
Christopher Lewis
Crude Oil daily chart, August 09, 2019

WTI Crude Oil

The WTI Crude Oil market has gapped higher during the trading session on Thursday, as we continue to see a lot of volatility in this market. This is a market that has recently reached towards the $50 level underneath which of course is a large, round, psychologically significant figure. That being said though, we are still very much in a downtrend over the last couple of weeks, but the question now becomes whether or not the $50 level can hold for massive support. At this point it looks likely at least in the short term, but this doesn’t mean we can’t fade this market after some type of rally. I’m especially interested in shorting this market closer to the $54 level.

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Crude Oil Forecast Video 08.08.19

Brent

Brent markets also gapped higher to kick off the trading session, but we have broken through significant support recently. It’s because of this fact that I’m not willing to buy this market and I do think that eventually we will get some sign of exhaustion, perhaps closer to the $59 level. That is a market level that was more of a “zone” of support, so it should now be a bit of resistance. Ultimately, I think this is a market that will eventually offer a selling opportunity if you are patient enough to wait for that set up. The alternate scenario of course is that we simply roll over and break through the $55 level and go lower, but I think that’s probably a lot less likely that a short-term bounce after this gap.

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