Crude Oil Weekly Price Forecast – Crude Oil Continues Range Bound

Christopher Lewis
·2-min read

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially tried to rally during the course of the week but gave back the gains to form a bit of a shooting star. That being said, we are still in the overall range that the market has been in, as the 50 week EMA has offered resistance. That being said, this is a market that I think continues to see a lot of pressure in both directions, not only from stimulus but whether or not we are going to see more demand. We clearly have a lot of resistance near the $43.50 level, and support near the $36.25 level. With that being the case, markets continue to chop back and forth.

WTI Oil Video 26.10.20

Brent

Brent markets also tried to rally initially during the week but gave back gains. The market looks as if it is likely to reach down towards the $40 level, as it is a large, round, psychologically significant figure. If we were to break down below that level, it is likely that the market goes looking towards the $35 level, perhaps even lower than that. Rallies at this point in time will more than likely show signs of exhaustion near the $45 level, which is a large, round, psychologically significant figure.

With this, I like the idea of shorting crude oil but probably more off of the daily chart instead of the weekly chart. All things being equal, the market is likely to see a lot of interest in this area and I think we get a lot of sideways chop while we try to figure whether or not we get stimulus and more demand.

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This article was originally posted on FX Empire

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