Crude Oil Price Forecast – Crude oil markets sluggish

The crude oil markets rallied a bit during the trading session on Wednesday but are starting to run into trouble at technical levels. That being the case, I think we will continue our overall choppiness.
Christopher Lewis
Crude Oil daily chart, August 01, 2019

WTI Crude Oil

The WTI Crude Oil market initially rallied a bit during the trading session on Wednesday but ran into trouble at the 200 day EMA to pull back. At this point, if we can break above the 200 day EMA, it’s very likely that we are going to go towards the $60.00 level above. This is a market that continues to be very noisy and erratic, and I don’t see that changing anytime soon. Granted, the Federal Reserve is going to be very dovish and that could throw more liquidity into the market, but at this point I think there is serious concerns about demand.

Crude Oil Price Forecast Video 01.08.19

Brent

Brent markets also tried to rally a bit but ran into trouble at the 50 day EMA. At this point, the market is likely to continue to struggle in this general vicinity at $65. The 50 day EMA is of course a major technical indicator that a lot of longer-term traders will get involved with. At this point, if we can break above the top of the candle stick for the trading session on Wednesday though, we could go looking towards the 200 day EMA above which is pictured in blue. If we break down below the candle stick from the trading session on Wednesday, then we probably go looking towards the $64 level, possibly even the $62.50 level after that. Again, just like the WTI market, we are struggling to find enough demand out there to keep supply down going forward. I think overall, we are probably going to be looking at a lot of back-and-forth trading.

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