Crude Oil Weekly Price Forecast – Crude Oil Markets Form Support of Candlestick

WTI Crude Oil

The West Texas Intermediate Crude Oil market fell during most of the week, reaching down towards the $10 level before bouncing significantly. We do not see on this weekly chart is that the markets essentially stopped right at the $20 level and are flashing sell signals. Yes, we formed a hammer on the weekly candlestick, but at the end of the day there is no demand, so it is definitely much more difficult to imagine this market rallying at this point that it is to see it falling. Ultimately, this is a market that I think will continue to be very noisy, but ultimately there is much more downward pressure than up.

WTI Oil Video 04.05.20

Brent

Brent markets had a positive week but are still within the range of the previous negative candlestick, so I think they are more than likely going to be sold into as well. With that, I think that the market goes down to the $20 level given enough time, because quite frankly we are far too much in the way of oversupply that it is difficult to imagine that this market is going to simply take off. Furthermore, supply issues are going to flood what little storage we have over the next 3 to 4 weeks, and therefore we could see another situation like we had last month. We could find traders trying to get out of the market in a bit of a panic overall, and that of course is going to be a major issue. Ultimately, it is difficult to imagine a scenario where we should be buying.