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

Christopher Lewis
Crude Oil weekly chart, February 04, 2019

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.

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