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Crude Oil Forecast and Technical Analysis Week of Jan 14-19

Crude Oil Forecast and Technical Analysis Week of Jan 14-19

We have entered two short trades in Crude Oil and they both reached the targets. The trades were based on Bearish Bat Pattern and Resistance/ RSI Overbought

As I have mentioned in the channel, the bearish rally was triggered by weekend profit taking purposes. However, there are still concerns over rising U.S. production, and key issues with China that have to be resolved despite favorable trade talks earlier in the week. The market is underpinned by the OPEC-led production cuts.

Fundamentals which will support the Bullish Move

OPEC and Russia began reducing output by 1.2 million barrels per day on January 1. If they maintain their discipline, this move should trim the global supply glut and stabilize prices.

The US and China ended three-days of constructive trade talks which were productive enough to lead to the scheduling of further negotiations later this month. This news has created enough optimism to drive short-sellers out of the market. Positive developments on the trade talks will accelerate the bullish move.

Fundamentals which will support the Bearish Move

Concerns over the Global Growth – especially China – could add weight on the price. Most analysts have downgraded their global economic growth forecasts below 3 % for 2019.

Increasing U.S. production, which is expected to climb above 12 million bpd this month (Last two week’s EIA Data support this concern), the possibility OPEC and its allies will lose their discipline and US-China trade relations.

Technical Overview and Key Levels:

WTI Crude Oil prices rejected EMA 50 / Daily Resistance and pulled back. Crude Oil ended week at 51.59 in the upper Bollinger Band / H4 Chart.

The price is well above EMA 50 and EMA 100 / H4 Chart. Bullish move will continue as long as the WTI prices holds above 51.17.

The midterm bearish scenario would be triggered at the breakout of 51.17. As seen on the H4 Chart, we may see the prices testing the broken trend line where EMA 50/EMA 100 resides at 49.40-49.20.

A potential retest of this level can be used as buying opportunity.

As seen on the below chart, a potential Bullish Shark Pattern formation can be used as long opportunity. – I will publish the details of the pattern for the members.

Additional trade opportunities will be published for the members.

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DISCLAIMER: This is a technical analysis study, not advice or recommendation to invest money

CRUDE OIL Forecast :Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. Chartreaderpro does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility

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