Crude Oil Weekly Price Forecast – oil continues to struggle
WTI Crude Oil
The WTI Crude Oil market went back and forth during the week, settling on a negative candle stick. We are currently hanging about the $50 handle, an area that should continue to be supported. If we were to break down below the $50 level, then I think this market probably drops down to the $45 level. As you can see on the chart, I have a little bit of a triangle drawn out, but this is based more upon the daily chart than anything else. If we break above the top of the triangle, then we probably go to the $55 level, perhaps even the $57.50 level.
WTI Video 17.12.18
Brent
Brent markets look very much the same in the sense that there is an uptrend line underneath, but production cuts and compliance of course will continue to be a major issue when it comes to these markets, and of course what I think is even more important is that the global demand may be slowing down. Economic numbers aren’t looking good globally, so that doesn’t help the oil situation either. If we do break down from here, I think the next major support level is to be found near the $55 level, perhaps even the $50 level. A move to the upside will probably be resistance near the $65 handle, which is the beginning of major resistance yet again. Overall, there is a lot of choppiness and I think it will be difficult between now and the end of the year to place larger time framed trades.
This article was originally posted on FX Empire
