Crude Oil Price Forecast – Crude oil markets continue to chop
WTI Crude Oil
The WTI Crude Oil market broke down significantly during the trading session on Tuesday, but then turned around to form a bit of a hammer like candle. The $55 level is of course an area that attract a lot of attention as the WTI Crude Oil market typically moves in five dollar increments. The fact that we have formed a bit of a bounce later in the session suggests that there is at least a bit of fight in this market. At this point, it looks like there is a lot of noise between here and $51 below, so therefore we could continue to see a bit of a bounce here and there. All things being equal though, it does look like the market is going to favor the downside. In other words, I like selling rallies.
Oil Forecast Video 07.08.19
Brent
Brent markets have broken down a bit during the trading session on Tuesday, reaching towards the crucial $59 level. As I have this chart marked, you can see that there is a $1.00 level extending down from the $60 level, which of course is a large, round, psychologically significant figure. Ultimately, the 50 day EMA offers quite a bit of resistance above and is starting to turn lower. If we break down below the $59 level, it’s likely that we break down towards the $55 level after that. Rallies at this point still offer selling opportunities although I do expect a bit of a bounce.
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