Crude Oil Price Forecast – Crude oil markets roll over drastically on Friday

The crude oil markets broke down rather significantly during the day on Friday as global markets continue to find plenty of reasons to look soft. At this point, it’s obvious that the downtrend is still very much intact.
Christopher Lewis
Crude Oil daily chart, August 26, 2019

WTI Crude Oil

The West Texas Intermediate crude oil market fell significantly during the trading session on Friday, slicing through the $55 level. At this point, the downtrend line has held and so have the 50 day EMA. I think at this point we are likely to continue to see selling on rallies. At this point, it’s likely that we could continue to go down to the $50 level. I’m looking for short-term rallies to sell off on signs of exhaustion, so at this point I think it’s only a matter time before those rallies offer a bit of an opportunity.

With the global trade war heating backup, it’s very likely that we will continue to see the man for crude oil soften. With that being the case, it’s obvious that we are simply looking to grind down to some type of equilibrium.

WTI Video 26.08.19

Brent

The Brent market broke down a bit during the trading session on Friday as well, as the $60 level continues to offer significant resistance, and when you look at the weekly chart, you can see a couple of shooting stars and that of course shows quite a bit of negativity. To the downside, the $55 level is a potential target, but I think we need to get through the $57.50 level initially. To the upside, the 50 day EMA which is painted in red will offer a significant amount of resistance. I simply look to fade rallies in this market as we have made a clear decision that crude oil is going to go lower.

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