Crude Oil Weekly Price Forecast – Crude Oil Markets Trying To Form A Bottom

Christopher Lewis
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WTI Crude Oil

The WTI Crude Oil market has rallied a bit during the week, breaking towards the $52.50 level before pulling back slightly at the end of the week. If we can break above there, then it’s likely that the market will then go looking towards the $55 level in at least short covering, if not some type of bullish move. Quite frankly, the markets have gotten to extreme levels and at the very least need to bounce. A lot of this is due to the coronavirus issue in China which may or may not be getting somewhat contained. If the Chinese are getting ready to go back to work, oil demand will explode and that should send this market higher although we did have a certain amount of concern when it comes to oversupply before then. In other words, I don’t necessarily think the price will go straight up in the air, but I do think that it probably needs to get a little closer to the middle of the box drawn on the chart. All things being equal though, if we break down below the lows of the last couple of weeks that would be a very negative sign and send this market looking towards the $45 level.

WTI Oil Video 17.02.20

Brent

Brent markets have looked even more positive, reaching towards the $57.50 level before pulling back slightly. The $55 level has offered a significant amount of support, and if we can break above the $57.50 level it’s likely that the market then goes to the $60.00 level after that. Just as in the WTI market though, if we were to break down below the lows it’s likely to drop another five dollars.

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This article was originally posted on FX Empire

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