Crude Oil Weekly Price Forecast – Oil Bounces Nicely to Find Support

WTI Crude Oil Weekly Technical Analysis

The crude oil market in the WTI grade fell rather hard to kick off the trading week, but we have since seen a nice bounce as the oversold condition has finally entered the psyche of traders. We are hanging around the 61.8% Fibonacci retracement level and therefore I think a lot of technical traders may have gotten involved. As we are oversold, this is a market that I think continues to see value hunters coming back in and of course with the jobs number on Friday coming out hotter than anticipated, it’s likely that there will be more demand for crude oil. At this point it would not surprise me at all to see the WTI market go looking to the $80 level. Pullbacks at this point in time continues to see plenty of value hunters.

Brent Crude Oil Weekly Technical Analysis

Over in the Brent market, you can see that we have fallen to break down below the 61.8% Fibonacci retracement level as well, only to turn around and show signs of life. This is a market that looks like it’s trying to recapture the $80 level, perhaps opening up the possibility of a move to the $84.50 level. In general, I think this is a scenario where market participants will continue to see a lot of volatility and I think we are essentially closer to the bottom of the overall range that we had formed last year, which I think will continue to be the range this year.

Keep in mind that geopolitics could come into play as well and therefore if we get some type of problem in the Middle East, then the oil markets will continue to react accordingly to all of the war in the Middle East. All things being equal, this is a market that I think goes higher in the short term, especially considering the cycle of the year. This time of year is typically rather bullish for petroleum.

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