Crude Oil Weekly Price Forecast – crude oil markets continue to look negative

Christopher Lewis
Updated
Crude oil markets continue to show bearish pressure, but we are starting to show signs of support at major levels. I think this is the first attempt to finally slow down the bloodbath in the oil markets.

WTI Crude Oil

The WTI Crude Oil market broke down during the course of the week, reaching down to the $55 level, an area that of course offers a lot of psychological significance. The area has been supportive in the past, so it’s not a huge surprise that the market bounced a bit from here. Quite frankly, it had gotten so oversold that a bounce was almost inevitable. The question now is whether or not we can hang onto that? I think it is early to jump in and start buying oil, but by the end of this coming week we may have some answers. If we break down below the $55 level, then we will go down to the $50 level. Ultimately, if we rally from here we may test the $60 level.

WTI Video 19.11.18

Brent

Obviously, Brent markets would suffer the same fate but have shown some resiliency at the crucial $65 level. I suspect that we could bounce from here and look towards the $70 level for resistance. If we can break above there, then we have to deal with the previous uptrend line. I think at this point the market continues to be a bit negative until we can break above that uptrend line, but right now I suspect that we will probably get some type of short-term bounce. Otherwise, if we were to break down below the $65 level, then it opens the door to the $60 level next. Regardless of what happens, you can expect a lot of noise.

This article was originally posted on FX Empire

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