Crude oil markets have a rough week and sell off drastically on Friday

Updated : May 26, 2018, 06:04 UTC•1min read

oil tanks

The crude oil markets initially try to rally during the week but fell apart on Friday as we have formed a very ugly candle in both grades that we follow here at FX Empire. Ultimately, it’s likely that we are going to go looking towards significant support underneath, and I

WTI Crude Oil

The WTI Crude Oil market initially trying to rally significantly towards the $73 level, before falling drastically and breaking through the $70 level. By slicing through the $70 level, it looks likely that we will continue to drift lower, perhaps looking for the next major support level at the $67 level. Ultimately, this is a market that I think has an uptrend line that we should pay attention to as well, so I think that we may get a couple of negative weeks before buyers come back in.

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Brent

Brent markets initially trying to rally during the week as well, breaking above the $80 level. We have turned around to show bearish pressure, and we have broken down below the shooting star from the previous week. I think at this point, the market is getting exhausted, we may need to fall a bit to find support. I think the next couple of weeks will be negative, but if we did turn around and break above the highs of the last couple of weeks, then the market could continue to go even further. However, I think that the market will continue to find plenty of buyers underneath, but we have simply gotten far too ahead of ourselves the continue going higher. I think that the $70 level underneath will be the absolute “floor” in the market.