Crude Oil Weekly Price Forecast – crude oil markets form potential bottomCrude oil markets fell during the week but are closing out the week in a positive tone, forming a bit of a hammer. I think at this point, we may be getting very close to a bottom in this market, and quite frankly that’s not a huge surprise considering how hard we have fallen.
WTI Crude Oil
The WTI Crude Oil market bounced around during the week but ended up forming a massive hammer. It’s possible that we could be forming a bit of a bottom, and after the massive selloff that we have seen, it makes sense that we will in fact find buyers. I think the $50 level above is massive resistance, but if we can clear that area, and then the $55 level, I suspect that oil will continue to grind towards $65. If we break down below the bottom of the weekly candle stick, then we probably go down to the $40 handle. Ultimately, this is a market that is trying to find its way.
WTI Video 31.12.18
Brent markets also have fallen very hard, reaching down towards the $50 level. Ultimately, this is a market that looks as if it is trying to form a bottom at that psychologically important figure, and I believe it’s only a matter of time before OPEC gets involved, and perhaps even see outright buying by certain sovereign wealth funds in the Persian Gulf. I think we are looking at the bottom for the year, and I believe that a lot of funds are about to jump back into the oil game due to a “reversion to the mean” type of trade that seems to be setting up. If we did break down below the $50 handle, this is a market that could reach $45 rather quickly.