Crude Oil Markets Have Wicked Reversal Week

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially tried to rally during the week but gave back the gains and completely unraveled. At this point, the market looks as if it is going to continue to see a lot of interest underneath, as we have bounced a bit from the $104 level. The $100 level underneath is a massive area of financial interest, so I think at this point in time we would see plenty of buyers jumping into the area. If we were to break down below there, then it is likely that we could fall rather quickly.

I do think oil will continue to see a lot of support, simply due to the fact that we have to worry about the reopening trade and of course the Russian oil that is now essentially off the market. That being said, if peace breaks out in Ukraine, then we could see further downward pressure.

WTI Oil Video 14.03.22

Brent

Brent markets initially shot higher during the course of the week as well but found enough resistance near the $135 level before collapsing. At this point, it is a massive sell signal we see in the market, as it has formed a massive shooting star. Looking at this chart, it certainly looks as if we are going to continue to see a lot of volatility, but quite frankly we got so far ahead of ourselves that is difficult to imagine that momentum would have been able to continue. The markets are going to continue to be very noisy, but it more than likely is going to be a “buy on the dip” scenario.

For a look at all of today’s economic events, check out our economic calendar.