Crude Oil Price Forecast – crude oil soft on New Year’s Eve

WTI Crude Oil

The WTI Crude Oil market initially tried to rally during the trading session on New Year’s Eve but gave back most of the gains to turn around and form a rather weak looking candle stick. Because of this, the market could roll over yet again, perhaps reaching towards the lows. However, the crude oil markets have been so negative that the buyers are going to struggle to continue to go higher. The $50 level above is massive resistance, as it was previous support. The 50 day EMA is turning lower, yet again. Ultimately, I think selling rallies continues to be the best way to go.

Crude Oil Video 02.01.19

Brent

Brent markets also gave back gains once it reached towards the $55 level, and of course you need to keep an eye on the downtrend line, and if you can stay below the downtrend line, the market should continue to go much lower, perhaps down to the $50 handle. The $60 level above is also resistance, so given enough time I think that you are looking for signs of exhaustion that you can take advantage of. Granted, the New Year’s Eve candle was a sign of exhaustion as well, but with the lack of liquidity you can’t read too much into it other than it is a simple continuation of what we have been witnessing. If we break below $50 in the Brent contract, that could open the floodgates to much lower pricing.