Crude Oil Price Forecast – Crude Oil Markets Look Vulnerable

WTI Crude Oil

The WTI Crude Oil market did very little during the trading session, but it was down ever so slightly. OPEC has cut back its estimate on global demand, so that is something to pay attention to. If there is less demand, then it should reason that oil prices will fall. Furthermore, the US dollar is starting to strengthen a little bit later in the day, so that also works against the value of crude oil. At this point, rallies that reach towards the 50 day EMA will more than likely be sold into, and quite frankly when you look at shorter-term charts you can make an argument for a descending triangle that signifies, we may just break down from here.

Crude Oil Video 15.09.20

Brent

Brent markets also look very susceptible to the selling pressure, and therefore I think it is only a matter of time before we break down towards the $35 level. If and when we do, you can expect a certain amount of momentum, as it will be the breaking of another significant support level. Underneath there, then the most obvious spot would be $32.50, followed by the $30 level. Rallies at this point or not to be trusted until we can overtake the 50 day EMA at the very least, if not the 200 day EMA which is above the $45 level now. At this point, I think at this juncture we are likely to see more of a “sell on the rallies” type of attitude out there, and that is exactly how I am going to play this market.

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