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Crude Oil Weekly Price Forecast – Crude oil markets gap to kick off the week

Crude oil markets gapped higher after the Saudi drone attacks rocked the markets on Monday, but at this point it’s obvious that the negative news was overblown as it appears the production will be back to full capacity by the end of the month.
Christopher Lewis
Crude Oil weekly chart, September 23, 2019
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WTI Crude Oil

The WTI Crude Oil market gap higher to kick off the week on Monday as we shot towards the $64 level before rolling over again. The market has broken above a downtrend line, but ultimately the market has also sold off most of that gain and looks to fill the gap. While you can’t see it is clearly on the weekly charts, clearly on the daily chart that shows there is a lot of negativity out there now. After all, there were concerns about whether or not crude oil demand would take out supply before, and now that we are just two weeks away from getting full production back, that continues to be a focus of the market.

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WTI Video 23.09.19

Brent

Brent also looks as if it is ready to pull back and fill a gap, which is one of the most common things that you see in the futures markets. Gaps do not go unfilled very often, and in fact this has only happened twice in the oil market over the last 30 years. With that in mind longer-term traders will look to short-term charts to show signs of exhaustion that they can jump into the market and start selling. Whether or not we can break down below the $60 level is a completely different question, but at this point in time looks very likely to see that attempted. Fading rallies should continue to work, at least to a point.

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