Crude Weekly Price Forecast – Crude Continues to Look Weak

WTI Crude Oil Weekly Technical Analysis

The crude oil market in the West Texas Intermediate grade has fallen apart during the week, and it looks like we are going to reach down towards the $67.50 level. This is an area that’s a major support level from the longer term standpoint, and therefore it makes a lot of sense that traders should be watching this.

If we break through there, that’s probably a very bad economic sign, and we could see this market really unravel, dragging a lot of things down with it. I cannot stress how important crude oil is as an economic indicator. On the other hand, if we bounce and take out the $71.50 level to the upside, it means that we have averted a bit of a crisis, and we continue to trade in the same resistance and support levels that have kept the market tight for two years.

Brent Crude Oil Weekly Technical Analysis

The Brent market looks very much the same. We’re threatening the $72.50 level, and we’re getting dangerously close to breaking down here. Keep in mind that the Chinese demand numbers were rather anemic earlier this week, and that directly influences Brent, probably more than the West Texas Intermediate crude oil market.

All things being equal, this is a market that I think continues to see a lot of noisy behavior, but I want to see at least one positive candlestick to start trading off of to the upside because I don’t want to just jump in and guess right here. Crude oil continues to be very noisy, and it is a leading economic indicator for the rest of the world. So, it most certainly needs to be paid close attention to.

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