Crude Oil Weekly Price Forecast – Crude oil markets continue to look confused

WTI Crude Oil

The West Texas Intermediate crude oil market has been all over the place during the week, as the $55 level continues to attract a lot of attention. We had rallied all the way towards the 50 week EMA before rolling over again, and breaking down below the $55 level, only to turn back around and break above the $55 level again. At this point, the market looks a bit confused and it is going to be difficult to trade this market from a longer-term standpoint.

WTI Video 05.08.19

Brent

Brent markets have been back and forth as well, using the $60 level as support. It’s a little bit more clear over here as to where we could go next. If we break down below the $60 level on a daily close, then I believe that Brent is very likely to break down towards the $55 handle. Alternately, I do see a lot of resistance near the $65 level, as there are a couple of EMA indicators there, and of course quite a bit of resistance in the past. If we break above the $67 level, then it’s possible that the Brent market could go looking towards the $70 level after that.

I expect to see a lot of volatility and choppiness, but it’s probably easier to trade this market from a shorter time frame. That being said, a break down below the $60 level is probably more likely for longer-term traders to be involved with.

Please let us know what you think in the comments below