Crude Oil Weekly Price Forecast – Crude Oil Flirting With Support
WTI Crude Oil
The West Texas Intermediate Crude Oil market has broken down below the $60 level in order to show signs of weakness again but have also turned around to rally at the last moment to save themselves. At this point, if we break down below the low of the weekly candlestick, it is very likely that we will see a continuation of the downward momentum. At that point, I would fully anticipate that this market goes looking towards the $52.50 level. On the other hand, if we turn around a break above the highs of the last three candlesticks, then it is likely that we go looking towards the highs again, as this is a market that has been very bullish until recently.
WTI Oil Video 12.04.21
Brent markets also have pulled back during the week, in order to test the bottom of the most recent noisy behavior. At this point, if we break down below the $60 level, I think that the Brent market will break down significantly. If we do get that another five dollars would probably be in order to the downside, possibly even $7.50 after that. To the upside, if we were to break above the highs of the last three candlesticks, then it is likely that oil will continue to go looking towards the $70 level again, which has been so resistant and of course is a large, round, psychologically significant figure. One thing is for sure, this market, much like the WTI market, will be very noisy indeed. With the recent OPEC production increases announce, that could be bearish for this market, but on the other hand you have people hoping for the reflation trade to drive up demand.
For a look at all of today’s economic events, check out our economic calendar.