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Crude Oil Price Forecast – crude oil markets break down on Friday

Christopher Lewis

WTI Crude Oil

The WTI Crude Oil market fell over 3% during trading on Friday, reaching down towards the $65 level and even breaking below it. The market is sitting on an uptrend line, and that of course is an area that will continue to be very important. At this point though, it looks to me as if the market is ready to give up and break down rather significantly. This will be exacerbated by a strengthening US dollar, and that being the case it’s likely that the commodities sector will continue to struggle. Add to that a trade war, and then we can see just how dire the situation could be.

Brent

Brent markets broke down significantly during the day as well, slicing through the $75 level. At this point, it’s likely that rallies will be sold, especially if we continue to see strength in the US dollar. I think that the market will continue to be very difficult, and I think that it’s only a matter of time before we break down even lower, with the $72 level being of importance because it is the area where trendlines from many months ago coincides. I believe that this market has made a major turn of events during the day on Friday and could become very bearish suddenly. I would expect a relief rally, but I would look at it as simply an opportunity to short.

Crude Oil Inventories Video 18.06.18

This article was originally posted on FX Empire

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