Crude Oil Weekly Price Forecast – Crude Oil Markets Make Strong StatementCrude oil markets rallied a bit during the week, reaching towards the major resistance barrier in the sign that they may in fact trying to fill the gap above.
WTI Crude Oil
The West Texas Intermediate Crude Oil market rallied significantly during the week, reaching towards the $30 level. That of course is a psychologically important level, but it should be noted that the market is closing out the week with a bang, and perhaps people are starting to factor in the rig count in the United States been cut in half, as well as major production cuts. Above there, there is a gap that extends to about $42, so ultimately this is a market that does have a destination, but to get above there would take quite a bit of a change when it comes to the global economy. That being said, if we cannot break above the $30 level, then it is likely that the market goes down to $27.50, and of course $25 after that.
WTI Oil Video 18.05.20
Brent markets fell initially during the week but found support underneath at the $29 level. After that, the market bounced above there to break above the $30 level, and then perhaps is starting to threaten the $35 level. Break above that level could open up a move into the gap above near the $45 level. Alternately, if the market were to break down below the bottom of the candlestick for the week, that could open up a move down towards the $25 level, possibly even the $20 level. That being said, the market certainly looks as if this bounce is throwing a lot of questions into the year but we have a couple of levels that we can please the next trade based upon, as it should give us a hint as to where the momentum is going.