Crude Oil Price Forecast – Crude oil markets give up early gains

Christopher Lewis
Updated
Crude oil markets trying to recover a bit during the day on Friday, but after the carnage that we had seen on Thursday, it should be no surprise that the sellers came in and push to the market right back down.

WTI Crude Oil

The WTI Crude Oil market has tried to rally during the trading session on Friday, but as you can see we have pushed right back down. At this point in time rallies are to be sold, because quite frankly there’s nothing to suggest that the market can rally on this chart. There is going to be serious concerns about global demand due to the US/China trade negotiations going nowhere, and of course there are several economic figures out there that don’t necessarily look that strong either. Fade rallies and aim for $55.

Crude Oil Inventories Video 27.05.19

Brent

Brent markets of course tried to rally as well but failed as we reached towards the $69 level. By doing so, it looks as if the market is ready to continue to go lower and I would be a seller of rallies as they come. Quite frankly, 5% losses in a single day signifies something bigger coming. At this point in time it’s not until we clear the $70 level handily that I would be interested in trying to buy this market, and I think that we are much likelier to see a move to $65 before that happens anyway. A break of $65 opens the door to the $60 after that. Brent markets are going to get hammered, just as the WTI market will. The Thursday selloff was the beginning of a major trend change, and we are starting to see that as we are below the 200 day EMA.

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This article was originally posted on FX Empire

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