Crude Oil Weekly Price Outlook – Crude Oil Continues to Sell Off

WTI Crude Oil Weekly Technical Analysis

The crude oil market has rallied just a bit during the early part of the week, but then fell again as we continue to crash towards the $55 level in the light sweet crude oil market. If we can break down below the $55 level, then the market could go much lower. Ultimately, this is a market that I think, when you look at lower timeframes, you can see just how much resistance there’s built into the $60 level. And therefore, I think you have to see any rally at this point in time as an opportunity to start selling.

Long-term trading, we could be in the process of trying to force some type of bounce. Ultimately, if the market does rally from here and we can break above $60, we can start to have the conversation of going higher. All things being equal, this is a market that has crashed pretty hard. I think there are a lot of concerns out there that the market participants are looking at through the prism of a lack of demand and, of course, oversupply.

Brent Crude Oil Weekly Technical Analysis

Looking at Brent, it’s very much the same situation with the $60 level offering support, probably down to about $58. If we crash through that, the bottom falls out, and oil is going much lower. Short-term rallies in Brent do make a certain amount of sense, but I think the $65 level at this point in time will continue to be a major resistance barrier.

The question now is, are we forming some type of hard floor in this market or are things going to get really out of hand? A lot of this comes down to what people think the economy is going to do because, after all, oil is the lifeblood of the economy.

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