Crude Oil Weekly Price Forecast – crude oil finishes strong for the week

WTI Crude Oil

The WTI Crude Oil market initially pulled back significantly during the week, just above the $50 level. By turning around and bouncing towards the $55 level, we have ended up forming a bit of a hammer, just as we did the previous week. This tells me that momentum is in fact pressing to the upside and trying to send this market above the vital $55 level. Once we do get above there, perhaps on a daily close, then I think the market goes looking towards the $60 level. In the short term, I think that pullbacks continue to offer buying opportunities, with the $50 level underneath offering a bit of a “floor” for the market. This marketplace could get very noisy in the meantime, but I do think we are trying to build up the necessary momentum to break out to the upside. If we did break down below the $50 level, then I think the market could roll over towards the $45 level.

WTI Video 04.02.19

Brent

Brent markets initially pulled back a little bit during the week, but then bounced again off of the $60 level to form a hammer. This looks like an inverted head and shoulders, and in fact we have what in both grades, so I think it’s only a matter time before crude oil breaks out to the upside in both grades that we follow here at FX Empire. Brent will probably go looking towards the $70 level, which is an area that was previous support. If we turn around and break down below the bottom of the hammer, then we could lose the $60 handle and continue to go down to the $55 handle. Either way, I think this is a very volatile market that is trying to build up that proper inertia needed to turn bullish.