Crude Oil Weekly Price Forecast – Look Ready to Go Even More Parabolic

WTI Crude Oil

The West Texas Intermediate Crude Oil markets initially fell during the course of the week but then turned around to show signs of life again. By doing so, we have formed a hammer that sits on top of the previous resistance level. That being said though, if we were to break down below the bottom of that hammer, it would turn into a “hanging man”, which is a very bearish candlestick. We are overbought, there is no two ways about it but just like we have seen in the stock market, nobody seems to care. With this sets up for is another run towards the $70 level, but sooner or later, we are going to have to focus on the fact that we are overbought, and I expect oil to pullback.

WTI Oil Video 15.03.21

Brent

Brent markets of course are in the same situation, hanging right at the $70 level with either a hammer, or a “hanging man”, depending on which direction we break. Nonetheless, I think that a pullback of at least five dollars makes quite a bit of sense, but I would not be a seller of this market quite yet. I think that we have a little further to go as people start to price in the idea of everything getting back on the right foot again, as the markets will be focusing on “pent up demand”, which is just the same thing as saying “green shoots” like we did 10 years ago. Ultimately, those green shoots ended up being somewhat lackluster, and I think that will be the same thing here but not quite yet. In the meantime, it looks like the buyers still run everything.

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