Crude Oil Weekly Price Forecast – Crude Oil Shows Strength Again

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied significantly during the course of the week to break the top of the shooting star from the previous week. This is obviously a very bullish sign, and I do think at this point the market is more likely to go higher rather than lower. That being said, I believe that the $65 level above will be difficult to overcome, and therefore think that might be about as far as we go in the short term. If you look at the chart going back several years, you can see that the $65 level has been extreme resistance, and I would anticipate more of the same on any rallies.

WTI Oil Video 01.03.21

Brent

Brent finds itself in a very similar situation, with the resistance being seen at the $70 level. That being said, I think it is only a matter of time before we make an attempt to get up there, but I do not anticipate that this market will simply sliced through that level without some type of serious catalyst. At this point, higher prices will continue to drive more US shale into the market, so I do think that it is only a matter of time before the market drifts a bit lower. We have gotten a bit ahead of ourselves, so I think at the very least we need a pullback in order to continue the bullish attitude. If we were to break above the $70 level, that could signify a rather strong leg higher.

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