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Crude Oil Price Forecast – Crude oil markets hit brick wall

Christopher Lewis

WTI Crude Oil

The WTI Crude Oil market went back and forth during the trading session on Monday, as we continue to see a lot of confusion as to demand and of course supply. Quite frankly, if the Iranian tensions and loosening monetary policy around the world can’t pick up the idea of demand for crude, I’m not sure what does. I think is a certain concern about global recessions and a lack of overall demand that we will continue to see move this market forward. I like fading rallies and believe that crude oil will continue to struggle.

Crude Oil Video 13.08.19

Brent

Brent markets went back and forth during the trading session as well, stalling at the $59 level. This is the beginning of an area that has been previous support that extends all the way to the $60 level. At this point, the market looks as if it is going to continue to struggle, and therefore we could turn around and reach towards the $55 level given enough time. Overall, I think that the market continues to be one that you should sell, because quite frankly there is a lot of negativity out there and I don’t see that changing anytime soon as the economies around the world are slowing down. If we did break above the $60 level though, we could go towards the $62.50 level, which has also been resistance. All things being equal though I like fading rallies and take advantage of opportunities to short again.

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This article was originally posted on FX Empire

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