Crude Oil Weekly Price Forecast – Crude Oil Markets Eke Out GainsCrude oil markets pulled back a bit during the week only to turn around and rally again, eking out a bit of gains to show continued pressure.
WTI Crude Oil
The WTI Crude Oil market initially pulled back during the week, breaking below the $40 level but has turned around to show signs of life again, which was exacerbated by a slightly better than anticipated inventory figure coming out of the United States. This of course is bullish, but at this point we still have to worry about the longer-term demand. After all, a lot of the economies around the world are starting to slow down and even lock down now, which of course cannot be good for the idea of crude oil demand.
Just above current trading is the 50 week EMA, and of course a major supply area in the $43.50 region. Because of this, I believe that it is only a matter of time before the markets start to see selling pressure yet again. Alternately, if we break down below the bottom of the candlestick for the week, then we probably drop down towards the $37.50 level. Looking at this chart, I think we could get a little bit of a short-term pop, only to see sellers jump back in.
WTI Oil Video 19.10.20
Brent markets of course are going to act very much the same but have a little bit further to go to the upside before the major supply comes into the technical analysis. The US dollar looks likely to make another attempt to strengthen sometime next week, so that will probably coincide with what is the inevitable pullback. Just as in the WTI market, if we break down below the hammer for the week, then we go much lower.
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