Crude Oil Weekly Price Forecast – Crude Oil Markets Get Bashed Due to Variant

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially tried to rally during the course of the week but found enough resistance near the $80 level to show signs of weakness. After that, we really started a move to the downside as the South African variant of coronavirus seems to have everybody freak out. Nonetheless, when you look at this chart it is likely that we see a lot of support in this general vicinity as the 50 week EMA is walking right along the uptrend line that I have marked. Because of this, it will be interesting to see on Monday opens up, because if we have a bullish day, we could reverse this rather quickly.

WTI Oil Video 29.11.21

Brent

Brent markets have also been hammered late in the week, to test the uptrend line. It looks to me as if the $70 level is an area of significant support, especially as the 50 day EMA is reaching towards it. All things being equal, this is a market that will probably find plenty of buyers, and therefore I am not quite ready to start shorting oil quite yet. Furthermore, the South African Health Minister has already stated that there is no evidence that the new variant of coronavirus is vaccine resistant. If that is the case, there is going to be a rush back into risk, especially crude oil and stocks. All things been equal, this is a market that could break down further, but Monday will be the real queue as to which way we are going. I would not jump in right away on the weekly open.

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