Crude Oil Weekly Price Forecast – Crude Oil Markets Continue to Be Volatile
WTI Crude Oil Weekly Technical Analysis
The West Texas Intermediate Crude Oil market has fallen significantly during the week to pierce the $100 level. That being said, the market turned around to show signs of life, forming a massive hammer. That does suggest that perhaps we have the ability to continue to the upside over the longer term, but quite frankly I think this is a scenario where you need to look at it through the prism of taking your time, and recognizing that longer-term traders are probably going to have to be very patient.
However, if we were to break down below the bottom of the candlestick for the week, that would be an extraordinarily negative turn of events, perhaps opening up massive selling.
Crude Oil Prices Forecast Video 11.07.22
Brent Crude Oil Weekly Technical Analysis
Brent markets have also plunged quite drastically to pierce the $100 level during the week, but then turned around to break back above the trend line that I have drawn on the chart. By forming a hammer that sits on the trendline, it does suggest that perhaps we are in a scenario where the market is going to do everything it can to hang on to the uptrend, and breaking above the top of the hammer is bullish enough to have traders chase price.
On the other hand, if we were to break down below the bottom of the hammer, that would be a very negative turn of events, opening up the possibility of a move to the $90 level. Ultimately, this is a market that I think continues to see a lot of noisy behavior as people are worried about global recessionary headwinds, but at the same time they also have to keep in mind that the supply/demand equation is still out of whack.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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