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

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Tuesday, as we continue to hover right around the $67.50 level. We are in a potential descending triangle, but quite frankly I think the most important thing to pay attention to is the $65 level underneath regardless, because we would more than likely see a massive selling pressure to reach down towards the 200 day EMA. On the other hand, if we turn around a break above the top of the downtrend line of the triangle, we could go looking towards the 50 day EMA above which is just below the $70 level and crawling lower.

Crude Oil Video 18.08.21

Brent

Brent markets have also dipped a bit during the trading session on Tuesday but then turned around to show signs of life again. By doing so, the market is likely to see the $70 level as significant resistance, especially considering we gapped below it to kick off the Monday session. However, there is an uptrend line and also a potential descending triangle in this grade that suggests that we may have quite a bit of trouble ahead.

The 50 day EMA currently sits at the $71.82 level and is sloping lower over here as well. At this point, I think there are real questions to ask about the global economy, which of course will have a major influence on Brent. Furthermore, the US dollar strengthening could also bring this market down. While I am not ready to start selling yet, if we were to break down below the $67.50 level, it is very likely that I would be short of this market.

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