Crude Oil Price Forecast – crude oil markets pulled back

Crude oil markets pulled back a bit during the trading session on Thursday after having a monumental rise during the Wednesday session. There has been massive selling pressure for some time, and the relief rally looks as if it is running into a bit of trouble.
Christopher Lewis
Crude Oil daily chart, December 28, 2018

WTI Crude Oil

The WTI Crude Oil market fell a bit during the trading session on Thursday, as we tested the $45 level. If we can break down below that level, then the market could probably go as low as $43 level, an area that offered a bit of support. Rallies at this point should be selling opportunities, and I believe that the $50 level above is a massive “ceiling” in the market. The 50 day EMA is also turning lower, which of course is a very negative sign as well. I believe in fading rallies.

Crude Oil Price Forecast Video 28.12.18

Brent

Brent markets also fell below the $55 level after that massive rally, and on this chart I even have a nice downtrend line on the chart that shows just how negative this market is. I think that the $60 level above, the 50 day EMA, and of course the downtrend line all give us pause . I believe that the $50 level underneath is massive support, but if it gives way and the sellers can break down below there, we could open the door to the $45 level rather quickly.

Ultimately, I need to see a daily close above the uptrend line at the very least a start think about buying. If we break above the 50 day EMA, then we could go back towards the highs. I do believe that OPEC will eventually jump into the market and cut back on production, so we will have to see what happens. I do think we are getting close to the bottom but we may not be there quite yet.

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