Crude Oil Weekly Price Forecast – Crude Oil Markets Recover for the Week

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied quite nicely during the week, breaking above the $41.25 level. Having said that, there is still a significant amount of resistance just above at the $43 level that we have not cleared. Because of this, I think that we continue to see a lot of volatility, and therefore it is difficult to trade this market from a longer-term standpoint until we get some type of obvious move. The 50 week EMA offers technical resistance, so that of course is something worth paying attention to as well. Ultimately, I think this is a market that will probably find sellers just above.

WTI Oil Video 21.09.20

Brent

Brent markets have also rallied but are nowhere near the 50 week EMA so we still have a little bit more room to run in this market. Pay attention to the US dollar, because if it does start to rally a bit from here, it is likely that we will continue to see a lot of volatility near the 50 week EMA and roughly the $45 level. I think at this point in time it is only a matter of time before the sellers come in and punishing rallies but breaking above the 50 week EMA would of course be a very bullish sign that worth paying attention to. After that, we would see the $50 level being targeted. To the downside, the $40 level is an area where we would see support and breaking down below that should dump the markets much lower, perhaps reaching towards the $35 level rather rapidly.

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