Crude Oil Price Forecast – Crude Oil Markets Get Slammed on Tuesday
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market initially tried to rally during the trading session on Tuesday, to break above the 50-Day EMA. At this point, the market is likely to continue to see negative downward pressure, as the recession situation continues to be a major problem for the market. At this point, even though there is a lack of supply, the reality is that there is going to be a lack of demand as well.
At this point, I will be paying close attention to the $100 level, because if we give up that psychologically important level, that would be very negative. However, I would also point out that we have just broken through the bottom of a bearish flag that measures almost $20. In other words, we could be talking about a move to $84 before it’s all said and done. Fading rallies should more likely than not be the way traders approach this market.
Crude Oil Prices Forecast Video for 06.07.22
Brent Crude Oil Technical Analysis
Brent markets have also fallen rather hard, breaking below the $105 level. The uptrend line is an area that a lot of people are paying close attention to. If we can break down below the $100 level over here, the market is more likely than not going to send this market down to the 200-Day EMA, perhaps even the $90 level after that.
Rallies at this point should be sold into unless, of course, we get a complete turnaround in the attitude of the market and of course the economic outlook. At this point, I think the market is trying to “reset”, so therefore a little bit further to the downside is more likely than not going to be the best way to test this market.
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This article was originally posted on FX Empire
