Crude Oil Weekly Price Forecast – Crude Oil Gets Pummeled

WTI Crude Oil Weekly Technical Analysis

You can see that crude oil has truly gotten smacked right back down during the trading week as we continue to see a lot of volatility. The West Texas Intermediate Crude Oil that’s caught my attention more than anything else due to the fact that the bad economic numbers that came out on Friday came from the United States and that may have freaked people out.

We continue to see a lot of noise overall and I do think that given enough time if we break down from here the $75 level gets targeted which is closer to the 61.8% Fibonacci retracement level. Anything below there could get ugly and interesting at the same time. If we turn around and take out the $80 level to the upside, then I think you get a situation where the market could go looking to the $85 level.

Brent Crude Oil Weekly Technical Analysis

Brent markets initially did try to rally during the week, but have been smacked right back down again, and it looks like we may be going lower from here. The $84.50 level continues to be a major ceiling, and if the United States slows down, so does everybody else.

So with that being the case, the one thing that would make me nervous about being short on oil is the fact that it would only take a random headline coming out of the Middle East to turn things right back around. Interestingly enough though, over the last couple years I’ve noticed those geopolitical headlines don’t have as much efficacy as they once did.

It’s almost like people realize that a lot of the noise coming out of the Middle East is just that, it’s noise. It will take something big to turn this around, at least in the short term. If we can recover next week, then maybe it becomes a buy on the dip scenario, but right now, I would stand out of the way.

For a look at all of today’s economic events, check out our economic calendar.