Categories: Market Overview

Crude could drop to $52 as global pressures persist, says top technical analyst

The energy market may be in for more pain. Crude oil prices had their worst weekly performance of 2019 last week, catching some reprieve on Tuesday as flooding in the Midwestern United States restricted supply from several key distribution centers. Overall, this year has been choppy for prices, which are often tied to global macroeconomic developments such as the ongoing U.S.-China trade war.

And there could be more weakness ahead for the commodity, warns top technician Louise Yamada, who predicted in April that the crude rally would stop if prices broke below the $60 level.

Now that they have, with U.S. West Texas Intermediate crude settling just above $59 on Tuesday, “obviously, the upside is limited,” said Yamada, who founded and runs Yamada Technical Research Advisors.

If oil prices break below last week’s low around $57, Yamada’s more conservative downside targets would be around $55 or $54 a barrel. “But $52 would be a target, let’s say, if this continued decline is without bounces,” she warned, pointing out that her firm’s outlook is still relatively bleak given oil’s inability to break above a downtrend from the 2008 peak for the last 10 years.

Crude could drop to $52 as global pressures persist, says top technical analyst, CNBC, May 28
The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

Share
Published by
The FxPro News Team
Tags: oil

Recent Posts

EURCHF Wave Analysis 20 December 2024

- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…

2 days ago

USDCHF Wave Analysis 20 December 2024

- USDCHF reversed from resistance zone - Likely to fall to support level 0.8860 USDCHF…

2 days ago

The US dollar ends the year on a strong note

The US dollar is at two-year highs. Factors such as changes in the Fed's monetary…

2 days ago

How deep will crypto dive?

The crypto market is experiencing a decline, with a potential further drop in value. Bitcoin…

3 days ago

EURGBP Wave Analysis 19 December 2024

- EURGBP reversed from support zone - Likely to rise to resistance level 0.8300 EURGBP…

3 days ago

EURJPY Wave Analysis 19 December 2024

- EURJPY broke resistance zone - Likely to rise to resistance level 165.00 EURJPY currency…

3 days ago

This website uses cookies