Crude Oil Weekly Price Forecast – Crude Oil Markets Break ResistanceCrude oil markets are broken above resistance during the week, as we continue to see people pricing in the “risk on economy” after the vaccine comes out.
WTI Crude Oil
The WTI Crude Oil market has broken above the $45 level during the course of the week, showing signs of continued strength. At this point, it is likely that we go looking towards the $50 level. That is an area that I think will continue to cause some serious issues, as it is a large, round, psychologically significant figure and of course where we see the 200 week EMA sitting just above. I do think that might be the target over the next couple of weeks though, as people are also starting to price and the possibility of an extension of OPEC production cuts.
WTI Oil Video 30.11.20
Brent markets are also breaking out, reaching towards the $50 level. I do think that we could probably play this market to the upside for a week or two, but it is probably only a matter of time before we start to worry about resistance again. The $55 level makes sense and most certainly the $60 level would after that. Regardless, with production cuts been rumored and of course people pricing in the vaccine, it does make sense that crude oil markets would rally, regardless of the grade. Furthermore, it looks as if the US dollar is starting to weekend, which should help commodities as well. Either way, I think it is going to be very noisy on the way up, but I certainly would not be a seller after this most recent move of the last 30 days or so. It is a bit early to call that an uptrend, but a recovery certainly seems to be a word I could use.
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