Crude Oil Price Forecast – crude oil markets run into resistance

WTI Crude Oil

The WTI Crude Oil market rallied initially during the day on Friday but give back quite a bit of the gains as we approached the downtrend line, and it now looks as if the 20 day EMA is offering resistance again. I think at this point we may continue to drift towards the $45 level, an area that I think will be rather supportive. The alternate scenario is that we break above that trend line, and possibly even the $50 handle after that. If we do, then the market probably goes looking towards the $55 level, and possibly even higher than that at that point.

Crude Oil Forecast Video 07.01.19

Brent

Brent markets rallied significantly during the trading session on Friday, piercing the downtrend line but looks as if it is starting to struggle to get above there for a longer-term move. Beyond that, I see the $60 level is an area where we could run into trouble as well. Because of this, I believe that we will probably see a bit of a pullback but both charts look as if they are trying to form a bit of a base on the weekly timeframe, so I am very cognizant of the fact that buyers could be waiting below, and in this case I would suspect that we are looking at the $55 level as potential support. The market is way oversold, so we could get a massive short squeeze if things turn out just right. Otherwise, I believe that the next major support level is closer to the $50 handle.