Crude Oil Price Forecast – crude oil gets hammered on Wednesday

Updated : Aug 16, 2018, 05:01 UTC•1min read

With the greenback taking off during the day on Wednesday, crude oil got absolutely hammered. Beyond that, there are concerns about a trade war, so was a bit of a “one-two punch” for the petroleum markets. It now looks likely that we will continue to see selling on rallies.

WTI Crude Oil

The WTI Crude Oil market has broken down significantly during the trading session on Wednesday, slicing through major support at the $65 level. Ultimately, this market should continue to go much lower, unless of course something changes drastically with the greenback, which seems to be a beast when it comes to the Forex markets. Overall, rallies are to be sold until we can break above the $66.50 level with authority. It now looks as if oil is the next domino to fall in the global risk category.

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Brent

Brent markets fell drastically as well, losing over 2% by the time I sat down to record this. We are reaching towards the $70 level, and the look at this chart tells me that we will probably break through it given enough time. I think rallies are to be sold obviously, and now it looks as if the market is probably going to start its next leg lower. Oil prices are going lower unless something changes drastically, and in short order. It’s not until we break above the $72 level on a daily chart that I would even begin to entertain the idea of buying, because quite frankly the market would need to prove itself after this type of thrashing. Selling short-term rallies in small bits will continue to work in my estimation, and once we get below the $70 level we could see an acceleration of downward pressure.