Crude Oil Weekly Price Forecast – Crude Oil Continues to Consolidate

WTI Crude Oil Weekly Technical Analysis

The West Texas Intermediate crude oil market has initially fallen during the week, only to turn around and show signs of life. At this point, it is worth noting that we have bounced from the 50% Fibonacci retracement level.

And of course, we are looking at the 50 week EMA just above, which on the daily chart is also the 200 day EMA. And then, of course, we’re paying attention to the $80 level. In general, if we can break above the $80 level, then I think the market can go higher, perhaps reaching the $85 level over the longer term.

Psychologically speaking, this is travel season, so therefore most of the time oil does fairly well. That being said, it doesn’t necessarily mean that it’s going to be an easy grind higher. But I do think that it’s easier for the market to rise than fall for a significant move.

Brent Crude Oil Weekly Technical Analysis

Looking at the Brent market, it’s very much the same situation bouncing from the 50% Fibonacci retracement level facing the 50 week EMA and the $84.50 level is a major barrier. If we can break above there, then it’s likely that we could go looking to the $90 level. On the other hand, if we were to break down below the bottom of the hammer on either grade, that probably drags oil on the whole down within the 61.8% Fibonacci retracement level would be an area that a lot of people would be paying attention to.

So do keep that in the back of your mind. That could be the next support level. Either way, this is a market that I think is going to continue to be very choppy on short term charts, but there are a lot of geopolitical concerns out there that could flare up and send oil straight up in there. So, keep that in mind.

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