Crude Oil Price Forecast – Crude Oil Markets Continue to Look Anemic

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially tried to rally during the session on Wednesday but found a lot of trouble at the $60 level, which of course is a large, round, psychologically significant figure. That being said, we did up forming a less than enthusiastic candlestick, and I do think that one of the things that we are paying close attention to is the fact that although there was a bit of a drawdown when it came to crude oil in America gasoline and distillates both rose. With this means is that there is a serious lack of demand from consumers at this point. I think that we are looking dangerously threatened at this point. A breakdown below the lows of the last couple of sessions opens up the possibility of a move down to $54.

Crude Oil Video 08.04.21

Brent

Brent markets also initially tried to rally but give back the gains as we are hanging about the 50 day EMA. The uptrend line is reaching towards this area again, and I think that if we were to break down below the uptrend line, the market could reach down towards the $60 level. Breaking down below the $60 level could send this market down to the $55 level given enough time. If we were to turn around and break above the top of the candlesticks over the last couple of sessions, that could send this market looking towards the $65 level. You can also make an argument for a bit of a head and shoulders pattern here as well, so things are starting to look a little bit ominous at this point in time.

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