Crude Oil Price Forecast – Crude oil markets get hammered

Crude oil markets got absolutely hammered during the trading session on Wednesday, breaking below the $57.50 level, an area that had offered support previously. Because of this, it looks like we are getting ready to go lower.
Christopher Lewis
Crude Oil daily chart, May 30, 2019

WTI Crude Oil

The WTI Crude Oil market broke the back of two hammers to show extreme weakness. With this being the case it looks as if we are going to go down to the $55 level underneath, possibly even further than that. There is nothing good about this chart right now and it looks like worries about global demand for crude oil have started to cause major issues. With that in mind I continue to fade rallies but quite frankly at this point I’m willing to just jump in and start selling as there’s nothing to convince me otherwise.

Crude Oil Price Forecast Video 30.05.19

Brent

Brent markets also look horrible, as they get ready to break down below the $67 level. At this point a breakdown below the lows from three candles ago is the signal to send sell orders into the market and trying to for at least $65 level. Rallies at this point in time will end up being nice selling opportunities that you can take advantage of as this market is definitely broken. Ultimately, I believe that we are going to at least $65, possibly even much lower than that considering how weak this chart looks. Stock markets falling of course do nothing to help the risk appetite sentiment out there, so this could get rather ugly rather. With a lack of global demand for crude oil, there’s nothing keep in this market up, not even that tension with the Iranian Revolutionary guard.

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