Crude Oil Weekly Price Forecast – Crude Oil Markets Continue To Struggle

WTI Crude Oil

Looking at the weekly chart, we have essentially formed a harami, bullish in nature. That being said though, we need to break the top of the range of the “mother”, which is the green candlestick from the previous week. It’s close enough to the $30 level that I think we need to break above there in order to start buying. At that point, crude oil is very likely to go looking towards the $40 level. I suspect that this would be in reaction to a massive OPEC cut, which is desperately needed to give any reason whatsoever for crude oil to rally. At this point, demand certainly isn’t going to do it, and the reaction in the market will simply be as to how many barrels are suddenly taken offline. Mexico is holding up talks at the moment, but if we do see 20 million barrels cut, that could be enough to get this market moving to the upside. Otherwise, we will go below the $20 level rather quickly.

WTI Oil Video 13.04.20

Brent

Brent markets look a little more dire, because they have formed a massive shooting star. The $30 level being broken to the downside will more than likely open up the market down to the lows again, which is closer to the $25 level. If we break down below there, then Brent will go looking towards $20. Alternately, if we can break above the top of the shooting star from the week, then the market could go looking towards the $40 level, possibly even the $45 level after that. Again, this is going to be all about the reaction to whatever cuts are made or are not made.