Crude Oil Weekly Price Forecast – Crude oil markets show signs of exhaustion

WTI Crude Oil

The WTI Crude Oil market initially tried to rally during the week but struggled at the 50 week EMA. We have pulled back to form a massive shooting star, so it looks very likely that we are going to continue to struggle. Having said that, we are looking at a hammer from the previous week, so I think what we are going to see is a bit of consolidation. Longer-term traders may find this a bit difficult to deal with, but short-term traders could see a nice set up in this market in either direction at this point. Obviously, the $50 level is going to be significant support, just as the 50 week EMA which is pictured in red above should be resistance.

WTI Video 19.08.19

Brent

Brent markets also tried to rally but ended up forming a nasty looking candle. At this point, it shows that we are starting to see a lot of negativity and therefore I think we could go looking towards the $55 level again. To the upside, if we were to break above the top of the candle stick which is roughly at the $61 level, we may make a move towards the $65 level. All things being equal though, this is a market that looks weak and of course we have to worry about global growth and global demand. At this point I think we are probably going to continue to see more negativity than anything else. All things being equal, I am a seller of Brent.

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