Crude Oil Weekly Price Forecast – Crude oil markets form reversal signal
WTI Crude Oil
The WTI Crude Oil market initially tried to rally during the week but has found enough resistance to turn things right back around and form a bit of a shooting star. That shooting star forming right at the $60 level is a very negative sign, and at this point I begin to wonder whether or not we are going to see a continuation to the downside. Suddenly, there are recession concerns all over the world, and that could continue to weigh upon crude oil markets as demand will be soft. Because of this, we could drop down to the $56 level.
Brent
Brent markets have also turned around to form a shooting star at an important level, which of course is a very negative sign. With that being the case, it’s very unlikely that we will get positive momentum in the short term. Beyond that, we also have recessionary headwinds out there, and I think at this point funds are simply liquidating everything they own in order to protect their funds. Over this scenario, it’s very likely that we will continue to see some weakness as Germany and the United States both have released bearish figures.
Looking at this chart, it’s very difficult to imagine a scenario in which it’s worth risking buying the market in the short term. However, if we did break above the top of the shooting star, that would be a very bullish sign and could send this market right back up to the upside. The turn on Friday has been very ominous.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
