Crude Oil Weekly Price Forecast – Crude Oil Markets Show Signs of Resistance AgainCrude oil markets rally during the week but have given back the gains to form a bit of a shooting star. They continue to struggle with the previous gap.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has rallied significantly during the week, only to give back gains to form a bit of a shooting star at the gap. The shooting star touched the 50 week EMA before pulling back, so this of course is a somewhat negative sign. Conversely, we have a couple of hammers that show signs of support, so I think at this point in time the market is simply going back and forth in a rather tight range. Longer-term traders need to see an impulsive candlestick in one direction or the other in order to get long or short, and quite frankly have nothing to do here.
WTI Oil Video 10.08.20
Brent markets also tried to rally during the course of the week but failed at the gap again. As the market has formed a bit of a shooting star for the week, it also looks very weak, but at the same time we see plenty of support underneath that show signs of support hundred current pricing. It is not until we get an impulsive in large candlestick in one direction or another that we can start trading.
To the downside, the $40 level could be significant support, just as the $50 level above could be a target. All things being equal though, this is a market that is very difficult to trade from a longer-term standpoint, but it should be noted that the gap has held so far. All things being equal, this is a very noisy market that is being pushed and pulled by the US dollar, production cuts, and questions about demand.
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