Crude Oil Forecast: Markets Quiet on Tuesday

• WTI Crude Oil and Brent markets have been struggling lately, facing significant resistance just above current pricing.
• In the case of WTI Crude Oil, the area just above has seen a lot of noise before, and the 50-Day EMA sitting right around the $75 level is psychologically important.
• If the market can break above the 50-Day EMA, it could go looking toward the $82.50 level, which was the top of the range previously. However, on signs of exhaustion, the market could go looking to the $70 level underneath.

On the other hand, Brent markets have also struggled, making a potential bearish flag out of the pattern that has been building. The 50-Day EMA sits above current pricing, near the $81 level, which could cause significant resistance as well. If the market breaks down from here, it could come tumbling down toward the $70 level, but it is not easy to imagine a situation where it simply slices through it.

The Market is Likely to Continue to be Very Choppy

It is essential to keep in mind that there are a lot of concerns when it comes to global growth, which is why it makes a lot of sense that oil is struggling. If the market breaks down further, it could have significant effects on the overall economy. However, it is not likely that the market will break through the $70 level easily. The crude oil market has been extraordinarily negative previously, and the downtrend should prevail.

At the end of the day, the WTI Crude Oil and Brent markets have been facing significant resistance lately, which could lead to a drop in prices. There are many concerns regarding global growth, and this could have significant effects on the overall economy. It is essential to continue to look for signs of exhaustion to start shorting. The higher the market goes, the more likely it is to fall. Unless there is some type of sudden explosion to the upside, which is unlikely, oil will continue to have a bit of weight around its neck. Therefore, it is crucial that you look at this through the prism of risk appetite more than anything else, as we have seen a lot of noise and scary signs of economic slowdown out there. With this being the case, the market is likely to continue to be very choppy, but it does favor the overall downside.