Crude Oil Price Forecast – crude oil markets pressing major resistance

Updated : Jan 7, 2019, 17:26 UTC•1min read

Crude oil markets rallied a bit during the day on Monday, reaching towards resistance. At this point, the next couple of days will be crucial for the petroleum markets, as the rebound has sent us towards major levels of selling pressure.

WTI Crude Oil

The WTI Crude Oil market rallied a bit during the trading session on Monday to reach towards the $50 level and of course the downtrend line that we have been paying attention to for some time. For what it’s worth, I think that if we can break above the $50 level, crude oil could take off and reach towards the 50 day EMA, perhaps even the $55 level after that.

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Ultimately, if we break down below the $48 level, we could then go down from there to reach towards the $45 level. At this point, I suspect that there is a long term negativity this market, but the fact that we are pressing this area so hard suggest that we could see a nice turnaround. One major factor could be a depreciating US dollar, which makes crude more expensive.

Crude Oil Video 08.01.19

Brent

Brent markets have rallied a bit during the trading session as well, and now it looks as if the $60 level above is resistance. If we can break above the $60 level, we will then test the 50 day EMA. If we can break above that, then we could go higher than that, reaching towards the $65 level, perhaps the $70 level. The downtrend line should now be supported, so I think as long as we can stay above the $55 level, we could have an opportunity to rally from here in a market that has been so beaten down that a relief rally wouldn’t be a huge surprise anyway.

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