Crude Oil Weekly Price Forecast – Crude Oil Markets Continue to Grind

WTI Crude Oil

The WTI Crude Oil market rallied to break above the 50 week EMA during the week but has given back some of the gains. Quite frankly, this is a very choppy and slow-moving market that is difficult for longer-term traders to hang onto. However, it does seem as if there is a continuing upward pressure in this market, so it makes quite a bit of sense that we would see buyers coming in on dips. I believe that there is significant support at the $40 level, so until we break down below there, I have to assume that we will continue to recover on short-term pullbacks.

WTI Oil Video 31.08.20

Brent

Brent markets also rallied but gave back some of the gains during the week, as we continue to grind higher over here as well. The 50 week EMA is just above and that is going to cause a significant amount of resistance. If we were to break above the 50 week EMA, then it is likely that the market goes looking towards the $50 level. I like the idea of buying short-term pullbacks, but if Brent breaks down below the $42.50 level, we will more than likely go looking towards the $40 level which is even more support. Breaking down below their opens up the floodgates send this market would fall apart. Demand for crude oil is starting to pick up just a bit, but the oversupply issue is still a major problem for pricing, so I think we continue the slow upward grind it more than anything else. Longer-term traders will continue to struggle hanging onto bigger positions.

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