Crude Weekly Price Forecast – Crude Oil Markets Get HammeredCrude oil markets got broken down through support during the week. With coronavirus lockdowns coming in various countries, that is going to drive down demand.
WTI Crude Oil
The West Texas Intermediate Crude Oil market broke down rather significantly during the course of the week, slicing through the $36.25 level II reach towards the $35 handle. Ultimately, I do think that we break down below there, and then go looking towards the $32.50 level, followed by the $30 level. We are finally seeing a bit of demand destruction here, and therefore it makes quite a bit of sense that we will continue going lower. The US dollar strengthening of course gives us an opportunity to see crude oil breaking down as well. Fading rallies on short-term charts is how I am trading this, but longer-term traders are probably simply going to sell off.
WTI Oil Video 02.11.20
Brent markets also broke down significantly during the trading sessions that make up the week, crashing through the previous support. Ultimately, the market looks as if it is going to go looking towards the $35 level, perhaps followed by the $32.50 level. Brent will probably lead the way lower, due to the fact that the European Union is shutting things down, and the Brent market is used quite a bit more in non-US countries. With that, I think we go lower, and it is likely that we will continue to break down.
75% of retail CFD investors lose money
At this point, short-term rallies will probably be sold into but if you are a seller from the longer-term standpoint all you need to do is look for some type of noisy behavior to take advantage of. $30 will course be psychologically significant underneath, so pay attention.
For a look at all of today’s economic events, check out our economic calendar.