Crude Oil Weekly Price Forecast – crude oil markets bounce for the week

Crude oil markets bounced a bit during the week, testing down trend lines in both markets at one point. However, we are still very much in a downtrend so the question is whether we are trying to build up some type of base, or are we simply getting a bit of a bounce?
Christopher Lewis
Crude Oil weekly chart, January 07, 2019

WTI Crude Oil

The WTI Crude Oil market bounced during the week but ran into trouble at the downtrend line that you see marked on the chart. Beyond that, we have the $50 level above that could probably cause quite a bit of resistance, so don’t be surprised at all if we get a pullback from here. If we can break above the $50 level, the market could go to higher levels, perhaps as high as $55 where we would see even more resistance. Because of this, I anticipate that we probably will get a little bit of a pullback, but we clearly have an area that if we break above, that would be a bullish turn of events.

Crude Oil Inventories Video 07.01.19

Brent

Brent markets rallied as well, breaking into a downtrend line, but giving back some of the gains. Because of this, I think that the market will probably continue to struggle at the $60 handle as well, so I think what we are looking at is a short-term pullback. The question is whether or not the previous weekly candle at the $50 level and bouncing was a sign that we are trying to form a base? This is certainly something worth paying attention to, but right now I do not trust the move higher until we clear $60 on at least a daily time frame. I think that short-term pullbacks could be buying opportunities for those who are willing to put a stop loss just below the $50 level. However, if $50 gets broken to the downside, this market will go much lower. In

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