Crude Oil Price Forecast – Crude Oil Markets Gapped Lower

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gapped lower to kick off the trading session on Thursday, clearing the $65 level for a very negative signal. At this point, the market looks likely to test the 200 day EMA, which sits at the $61.50 region. The crude oil markets are starting to get beat down by the idea of a slowing down of global growth, and quite frankly the latest industrial numbers do nothing to change that idea. The demand for crude oil seems to be slipping, and of course a strengthening US dollar will continue to cause problems. That being said, the 200 day EMA could come and cause a little bit of support.

Crude Oil Video 20.08.21

Brent

Brent markets have gapped lower as well, to reach down towards the $66 level. The 200 day EMA currently sits at the $61.20 level, as we have broken through an uptrend line is of course the bottom of the descending triangle that we have been looking at. Because of this if we see any sense of exhaustion above, then I imagine that sellers will jump back into the market. On the other hand, if we fall from here, it is likely that we go looking towards the 200 day EMA.

If we break down below the 200 day EMA, then it is likely that the market goes looking towards the $60 level, which of course is a large, round, psychologically significant figure. It is worth noting that we have formed multiple” lower highs”, and now have finally formed a “lower low.” The trend is changing, and therefore I have become much more bearish unless of course the 200 day EMA can somehow stop the selling.

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