Crude Oil Price Forecast – Crude oil markets relatively flat

Crude oil markets rallied a bit during the trading session on Thursday, but gave back quite a bit of the gains. By doing so, it shows that the market is still struggling overall and I do believe that we continue to see trouble ahead.
Christopher Lewis
Crude Oil daily chart, May 31, 2019

WTI Crude Oil

The WTI Crude Oil market trying to rally during the trading session on Thursday, but gave back the gains as we got close to the 200 day EMA, which of course is a very negative sign. This is a market that has recently broken through a lot of major support, so a pullback from here is not a huge surprise. Quite frankly I believe that this is going to end up being a selling opportunity every time rally in the short term, as there’s no reason to think that the situation about Global growth is going to change in the short term. Beyond that, oversupply a crude oil is still a major issue.

Crude Oil Forecast Video 31.05.19

Brent

With Global growth dropping, it’s not a huge surprise to see that the Brent market also fell. We are also below the 200 day EMA at this point and I believe that the $70 level above will be a major resistance barrier. If we were to break above that it could send this market into more of a bullish tone, but quite frankly think that’s unlikely this point. It certainly looks as if a major breakdown has started, and I believe that selling rallies will continue to pay dividends with a little patient enough to wait for them to happen. Remember, you can get the occasional massive rally in a bear market, which is what makes shorting certain markets very difficult. However, it certainly looks as if the sellers are starting to have their way with crude oil in general. I am a net seller, at least until something changes.

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