Crude Oil Markets Form an Inverted Hammer During the Week

WTI Crude Oil Weekly Technical Analysis

The West Texas Intermediate Crude Oil market initially tried to rally during the trading week but gave back gains rather drastically as you can see. The resulting inverted hammer is a very negative look, and therefore if we break down below the bottom of the candlestick, it is likely that we go looking to reach the $95 level, and then eventually the $90 level. At this point, I think there are a lot of concerns about demand destruction, and we have even seen the economic numbers recently suggest that demand for gasoline is falling.

Crude Oil Prices Forecast Video 11.04.22

Brent Crude Oil Weekly Technical Analysis

Brent markets also tried to rally to kick off the week but found enough resistance to turn around and form an inverted hammer. By doing so, the market is sitting right on top of a major support region between the $100 level and the 100 in two dollars level. There is a previous uptrend line that comes into the picture, and therefore if we break down through there it is likely that the market goes much lower.

All things being equal, this is a market that will continue to see a lot of pressure, but if we break down below the bottom of the candlestick for the week, it is very likely that Brent drop significantly, reaching the $90 level rather quickly, perhaps even the $86 level. At this point, any rally looks a bit suspicious, but if we were to break above the top of the inverted hammer, that allows for the market to go looking toward the $120 level. Expect a lot of choppy behavior, as one would expect in this type of environment.

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