Crude Oil Weekly Price Forecast – Crude Oil Markets Recover After Initial Selloff

WTI Crude Oil

The West Texas Intermediate Crude Oil market has fallen rather hard during the course of the week to reach down towards the $65 level before turning around and showing signs of recovery. Because of this, we have formed a massive hammer which of course is a very bullish sign. If we can break above the top of the same or, it is likely that the crude oil market will continue to go much higher. At that point, it is very likely that the market could go looking towards the $80 level, but that does not necessarily mean that is going to happen overnight. If we break down below the bottom of this candlestick, that would be an extraordinarily negative sign as the market goes looking towards the $60 level.

WTI Oil Video 26.07.21

Brent

Brent markets have also plunged during the week to test a trendline before turning around and showing signs of strength. The hammer of course is a bullish sign and therefore if we break above the top of it is likely that we may try to break out to fresh, new highs. To the downside, the $70 level should continue to be support on any type of pullback, just as the uptrend line should be. If we were to break down below that uptrend line, we could break down rather significantly, perhaps even changing the overall trend. At this point though, that does not look very likely to happen as traders still bet on the reopening trade. Ultimately, this is a market that I think is going to be noisy but should eventually work itself out as we continue to focus on the reopening.

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