https://thegoldandoilguy.com/wp-content/uploads/2019/07/25.png 516 850 admin http://www.thegoldandoilguy.com/wp-content/uploads/2014/11/tgaoglogo.png admin2019-07-30 09:47:442019-07-30 09:47:44Crude Oil Should Breakdown to $51 Early This Week
Crude Oil Should Breakdown to $51 Early This Week
Our Adaptive Dynamic Learning (ADL) predictive modeling system is predicting that Crude Oil will break recent support levels near $55 and move very quickly down to levels near $50 to $51 before August 2nd, 2019. The move to near the $50 price level is likely to be a 100% measured Fibonacci price extension related to the initial downside move from $61 to $55 earlier in July 2019. After this new downside move completes, we expect Crude Oil will form a short-term price base just above $50 that may last many days or weeks. Our earlier analysis of Oil called this move and we outline our future oil expectations. For more information about this call, please review the following research posts. This Daily Crude Oil chart highlights the next downside price move that we are expecting will take place over the next 4 to 7 days. After the $50 to $51 lows are reached, Oil should base near these levels and begin a moderate upside move back to levels above $54. This move aligns perfectly with our earlier analysis and research and strongly suggests that oil will target a sub-$40 price level in the near future. What does this mean for investors and traders? It means that our ADL predictive modeling system is accurately calling these moves in oil and that the sub $40 price expectations could reflect a decrease in global economic expectations over the next 6+ months. For oil to continue to fall to levels below $40, demand would have to wane or supply would have to increase globally – or both. Additionally, it would likely indicate that global expectation for the future demand for oil would be far lower than previously expected. A commodity price collapse, like this, could be an early warning sign that the global economy is slowing much faster than many expect or it could be a sign that the fundamentals in the oil market are shifting as the economy is slowing. Either way, it appears we are headed for sub $40 price levels in oil later this year.