Crude Oil Weekly Price Forecast – Formed Bearish Candle Last Week

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied above the $60 level during the course of the week but has given up quite a bit of the gains to form a shooting star. That suggests that we are about the turnaround, and with that being the case it is likely that we will see selling pressure going forward. The reality is that the freezing in Texas has slowed down and energy producers are starting to throw supply back into the market. This is not to say that the uptrend and oil is over, but certainly the overbought condition looks likely to correct itself in the short term.

WTI Oil Video 22.02.21

Brent

Brent markets have also form a shooting star, which of course is a negative sign. The shooting star sits right at the $65 level, so I think what we are more than likely going to see is a pull back to reach down towards the $60 level. On the other hand, if we were to break above the top of the shooting star it will probably open up the doors to the $70 handle, but one thing is for sure here: the market is getting stretched and sooner or later there will be a day of reckoning.

Further compounding the issue is the fact that Saudi Arabia is hinting at the possibility of increasing oil output, which will put negative pressure on this market as well. In general, I think we have a short-term pullback coming but whether it turns, and something bigger remains to be seen. I think choppy conditions will continue to be a major issue.

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