Crude Oil Weekly Price Forecast – Crude oil markets struggle for the week

WTI Crude Oil

The WTI Crude Oil market tried to reach above the $57.50 level during the week but then failed. We pulled back, and then sold off rather sharply on Friday, forming a very negative looking candle stick. This candle stick suggests that perhaps we are ready to go back into the previous consolidation area, which won’t necessarily be easy, but clearly going higher is becoming an issue.

Ultimately, expect a lot of choppiness but it looks like the downward pressure is starting to pick up. With the poor jobs report and of course the ECB suggesting that there was serious global demand issues, oil seems to be taking it on the chin as a result.

WTI Video 11.03.19

Brent

Brent markets of course did the same thing, reaching towards the 50 week EMA, and then rolling over to break below the $65 level. By forming this candle stick, it suggests that buyers simply cannot keep the market lifted, and eventually they ran out of momentum. Once they do, the sellers will take over. At this point, it looks as if the $64 level is going to offer support, but if we can break down below there, this market will probably unwind rather drastically.

Of note is the fact that the 50% Fibonacci retracement level is just above where we had peaked, so there could be in the technical argument made for that move as well, but I think a lot of this comes down to some of the most recent headlines.

Please let us know what you think in the comments below