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Crude Oil Weekly Price Forecast – Crude oil markets run into brick wall

By:
Christopher Lewis
Updated: Feb 25, 2019, 16:50 UTC

Crude oil markets rallied during most of the week but continues to struggle at the familiar resistance areas. Because of this, it looks like we need some type of catalyst to get going.

Crude Oil weekly chart, February 25, 2019

WTI Crude Oil

The WTI Crude Oil market rallied during the week, slamming into the $57.50 level. This is an area that has been marked on my chart for some time as potential resistance, based upon not only the cluster back in December 2017, but also based upon the surge in volume to the downside that we had seen recently. With that in mind, it’s not overly surprising that we are struggling in this area, but the resiliency of the buyers should be noted.

Ultimately, if we can break above the $50 level we are probably free to go much higher but we need to at least get a daily close above there. If we do, then I think the market is free to go higher, probably towards the $60 level. However, I would expect short-term pullbacks to continue to be the norm.

WTI Video 25.02.19

Brent

Brent markets also continue to run into trouble, at the $67 level. This is a market that seems to be leading the Way though, so I think that your probably better off watching Brent for signals on the WTI market as it will probably try to play catch-up. With that being the case, I am bullish of Brent just as I am WTI but I also recognize that we need to get some type of catalyst or momentum going. Pullbacks are likely but at this point it seems as if the 50% Fibonacci retracement level just above is continuing to cause a bit of a headache for the buyers.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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