Crude Oil Price Forecast – Crude oil markets looking for support

The crude oil markets have gone back and forth during the trading session on Friday as it looks like we are trying to find bits of support after a massive selloff. There has been an extraordinarily large amount of noise in the market over the last couple of weeks, and that looks to be more of the same coming.
Christopher Lewis
Crude Oil daily chart, September 16, 2019
An oil pump jack

WTI Crude Oil

The West Texas Intermediate Crude Oil market continues to be very noisy as the $55 level has attracted a lot of attention. At this point, it looks very likely that we are going to continue to bounce around in this market, and if you squint you can see an uptrend line. At this point, it’s likely that we could go looking towards the 50 day EMA which is near the $56 level. If we can break above there, then it’s likely that the market goes looking towards the $58 level which is the 200 day EMA. Ultimately, if we break down below the hammer from the trading session on Thursday, then it’s likely that we go down towards the $52.50 level.

Crude Oil Inventories Video 16.09.19

Brent

Brent markets also have fallen during the trading session but still look likely to find buyers in this general vicinity. If we can break down below the hammer from the Thursday session though, that is a very negative sign and probably signifies that we are going to go much lower. Alternately, we could bounce from here for a short-term relief rally but I think there is still a lot of downward pressure on this market. Brent markets are much more sensitive to global demand as opposed to American, so that gives us a chance at seeing some type of divergence between the two markets. With that, I believe that the WTI will probably outperform.

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