Crude Oil Weekly Price Forecast – Crude Oil Markets Continue to Look Soft

WTI Crude Oil

The West Texas Intermediate Crude Oil market has tried to rally during the week but gave back the gains in order to form a bit of an inverted hammer. At this point, if we can break above the top of that hammer, we could see a bit of a short covering rally to reach towards the $30.00 level. However, if we break down below the $20.00 level, that would be an extraordinarily negative sign to say the least. I do believe at this point we are probably going to continue to see noisy and heavy trading conditions. There is a gap above that needs to be filled though, but quite frankly we need Saudi Arabia and Russia to knock out the price war or at least show signs of a falling of relations in order to even begin that move.

WTI Oil Video 30.03.20

Brent

Brent markets of course look very much the same, as we are below $30.00. The candlestick from the previous week is being tested to the bottom, and if we break down below that it’s likely that Brent will follow through to the $25.00 level, possibly even lower. That being said, if we break above the top of the candlestick it would be a very bullish sign and this market could go looking towards the $35.00 level in a bit of a short covering rally as well. I do like the idea of buying if we get that breakout to the upside but like I said, we need to see some good news before anything like that could happen.