Crude Oil Weekly Price Forecast – Crude Oil Markets Get Hammered For The WeekCrude oil markets got absolutely hammered during the week, forming an extraordinarily bearish candlestick. That being said, we are still well within the overall range that we have been in for the year and a half.
WTI Crude Oil
The WTI Crude Oil market initially tried to rally during the week, reaching towards the $60 level before breaking down significant down to the $54 level. This has been a significant break down, and we are closing towards the bottom of the range for the week, which in and of itself is a very sign. However, there is significant support down at the $50 level, so I believe at this point we will probably continue lower, but have buyers come back in at that level. If we were to break down below the $50 level, that could open up the door for oil to go back down to the $45 handle.
Crude Oil Inventories Video 27.01.20
Brent markets have broken down significantly during the week as well, reaching towards the $60 level. There is significant support underneath near the $57.50 level, extending all the way down to the $50 level. I think at this $55 being broken to the downside opens up a shorting opportunity just as a bounce from the $57.50 level is an opportunity to take advantage of the consolidation that we have been in over here as well. Essentially, it’s going to be the same play as we see in the WTI grade of crude oil, that we are simply waiting to see whether or not the support shortly underneath us is going to hold. If it does, then the trade is clearly to play the range further. Otherwise, we have a little further to go to the downside going forward as the neck support level is a little further lower.
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