Crude Oil Price Forecast – Crude oil markets show softness on Wednesday

The crude oil markets try to rally initially during the trading session on Wednesday but then gave back the gains as we continue to see a lot of exhaustion. At this point, crude oil looks very vulnerable.
Christopher Lewis
Crude Oil daily chart, July 18, 2019

WTI Crude Oil

The WTI Crude Oil market rallied a bit during the trading session on Wednesday but then gave back quite a bit of the gains to cross below the 50 day EMA again. By forming the candle stick that we have, it looks very likely that we are going to drop down, perhaps to the $56 level, possibly even the $55 level underneath there. I think that the market is starting to show signs of extreme weakness, so if we drop below the bottom of the candle stick for the trading session on Wednesday, then there could be a bit of a “flush lower.”

Crude Oil Price Forecast Video 18.07.19

Brent

Brent markets initially tried to rally during the trading session on Wednesday, reaching towards the 50 day EMA where we see resistance. By forming the candle stick that we have, it shows up weakness in this market, and therefore break down below the candle stick opens up the door to the $62.50 level. That’s an area that will be a nice target, so I do think that eventually we try to go down to that level. Global demand is concerning and therefore I think crude oil will continue to get hit as a result. Beyond that, we have a huge amount of concern about growth, so it makes sense that the demand for oil will drop. The Americans continue to flood the market with supply as well, so overall this is a market that continues to look a bit heavy, and I do think that rallies are probably to be faded at this point.

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