Forecast of Crude Oil Prices - Crude Oil Markets Continue to Collapse

The West Texas Intermediate Crude Oil market originally attempted to rebound during Wednesday's session to demonstrate signs of life, as we reported over $100. At that moment, the market has gone back down, nearing the 200 Day Exponential Moving Average by the time the Americans enter. Ultimately, I believe that this market continues to have a great deal of negative, and if we break below the 200 Day EMA, it is probable that the market will fall below the $90 level. Since the global market is beginning to stall, this will continue to weigh on the possibility of oil prices increasing. Most likely, short-term rallies will be capped.

Brent markets have also attempted to rebound, but have failed at the prior trendline, which now possesses a certain amount of "market memory." The candlestick is rather long, and it appears that the downward trend will continue. Until we break above the trend line from the previous several months, I believe that signals of weariness will continue to diminish. In addition, the U.S. currency continues to grow significantly, so this market will also be rather unfavorable.

I feel that if the price falls below the 200-day exponential moving average, the $90 level will be a huge, round, psychologically significant number, as well as a previously significant location. Ultimately, it appears that the downward pressure is increasing, not decreasing.