Crude Oil Weekly Price Forecast – Crude Oil Gives Up Early Gains

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied initially during the course of the week, only to turn things around and show signs of exhaustion. The candlestick for the week is a shooting star, just as the previous week was. This tells me that the crude oil market is almost certainly running out of steam, and I do think that it is only a matter of time before we perhaps make a move down to the $50 level. After that, the market could go bit lower, perhaps reaching down to the $47.50 level before finding significant support from the weekly timeframe. At this point, a lot of people are concerned about stimulus, and therefore crude oil markets may drop as a result.

WTI Oil Video 25.01.21

Brent

Brent markets have also tried to rally during the course of the week, showing signs of strength to reach towards the 200 week EMA. The 200 week EMA has offered enough resistance to turn things around and show signs of exhaustion. At this point, the Brent market looks as if it is ready to fall towards the $50 level, an area that of course is a large, round, psychologically significant figure, and is also where we are starting to see the 50 week EMA reach towards. That being the case, I think it makes sense that we trying to give back some of the initial gains from the last couple of weeks as stimulus looks to be more difficult to achieve than originally thought, and the size of it certainly is going to be smaller than the $1.9 trillion that Joe Biden asked for.

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