Crude Oil Price Forecast – Crude oil markets look vulnerable again

WTI Crude Oil

The WTI Crude Oil market tried to rally a bit during the trading session on Tuesday, but ran into trouble just below the $55 level, an area that has featured a short-term uptrend line as well. At this point, the market looks likely to see a bearish pressure, and now we are looking at the market trying to figure out where to go next, but certainly it looks like it’s probably going to be lower. If we can break down below the lows of the trading session from the previous day, that would in fact be a selling signal, perhaps sending this market down to the other uptrend line, and then eventually the $52.50 level.

Oil Forecast Video 02.10.19

Brent

Brent markets also tried to rally but ran into a bit of trouble at the $60 level as we continue to see a serious concern as to whether or not there is significant demand out there for energy. At this point, I like the idea of fading rallies, and believe that the market will continue to struggle going forward. The $57.50 level will cause support, just as the $55 level will. The 50 day EMA above at the $61.80 level should continue to offer significant resistance, and therefore after the bearish candlestick from Monday, I believe that somewhere between here and there the sellers will overwhelm any buying pressure unless of course something fundamentally changes. I remain bearish, but I also recognize that we are probably going to have small ranges from which to trade.

Please let us know what you think in the comments below