Crude Oil Weekly Price Forecast – Crude Oil Continues to Struggle

WTI Crude Oil

The West Texas Intermediate Crude Oil market has shown itself to be struggling as of late, as we continue to see a lot of noise in general. Stimulus continues to be one of the main issues, and if we continue to struggle overall, it is likely due to the fact that people do not understand whether or not there is going to be demand. We are at a major supply level on the chart anyway, so this could cause some issues going forward. With that in mind, I like the idea of taking advantage of what has been a resistance barrier and shorting for a week or two. I think the market could probably drop down to about $45 on some type of significant break to the downside.

WTI Oil Video 01.02.21

Brent

Brent markets also initially tried to rally during the course of the week but found the 200 week EMA to be a bit too much. We have formed a couple of shooting stars in a row now, and it looks like Brent is also being threatened in general. If that is going to be the case, then it is very likely we are going to see serious problems in this marketplace. At that point, I would anticipate that the $50 level could be targeted, where we would start to come into focus of the 50 week EMA. I do like the idea of fading this market, because quite frankly it got too far ahead of itself and now it suddenly has no momentum. As stimulus continues to drag on in the United States, that also has an effect on the demand picture for crude oil, so that is something to keep in the back of your mind as well.

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