Crude Oil Price Forecast – Crude oil markets show weakness on Friday

WTI Crude Oil

The West Texas Intermediate crude oil market initially tried to rally during the day on Friday but continues to see resistance above the $55 level. Beyond that we also have the 50 day EMA just above that is starting to slope lower, and oil can’t seem to get out of its own way. The weekly candle stick is a shooting star, so that’s also a very negative turn of events as well. Be aware that the previous week candle of course was a hammer so what I think we are going to see is a grind lower with a lot of choppy volatility. With this I look to short the market on small rallies that show signs of exhaustion.

Crude Oil Inventories Video 19.08.19

Brent

Brent markets also tried to rally during the trading session on Friday but just as the WTI market did, the Brent market broke down and rolled over to form an exhaustion candle. It’s obvious to me that the previous support level between $59 and $60 is now offering resistance, as one would expect. On a break down from here we will first target the $57.50 level, and then possibly the $55 level after that. I have no interest in buying, and if we did break out to the upside I would anticipate that the 50 day EMA which is in red on my chart should continue to quite a bit of resistance. I think that the $55 level underneath will be massive support, so I’m not necessarily looking for a break down below there.

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