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Crude Oil Weekly Price Forecast – crude oil markets testing major support

Crude oil markets fell significantly during the week, testing a major support zone on the weekly chart. That being said, there is a lot of buying pressure underneath but at the same time there are a lot of concerns when it comes to demand.
Christopher Lewis
Crude Oil Weekly Price Forecast - crude oil markets testing major support

WTI Crude Oil

The WTI Crude Oil market has broken down a bit during the course of the week, reaching into a major support level. That being said, the market is currently worried about quite a few different things at the same time, not the least of which would be the coronavirus and a lack of demand coming out of China as a result. Because of this, oil markets have been battered, but we are at an area that should continue to offer quite a bit of support based upon historical price action and of course the fact that the $50 level is massive due to it being a large, round, psychologically significant figure.

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Brent

Brent markets also have fallen hard and into the major support level that is the bottom of the trading range. With this being the case, the $57.50 level is the beginning of support down to the $55 level underneath. Even below that, the $50 level will be very supportive, so looking at this market, it appears that we are going to trade near the $55 level in order to try to break down below it and towards the $50 level. All things being equal though, Brent is much more sensitive to China in the Middle East then WTI is, and therefore Brent will probably be a bit of a laggard when it comes any type of recovery. Ultimately, I like the idea of waiting for another week or so to see what this market does, as the next candlestick should be very telling.

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