Crude Oil Price Forecast – Crude Oil Markets Undulate on Friday

WTI Crude Oil

The West Texas Intermediate Crude Oil market has fallen a bit during the trading session on Friday but turned around to show signs of life again. By forming the candlestick that it did, it does suggest that perhaps market participants are going to continue to see a lot of volatility, but one thing you should pay attention to now is the weekly chart. The weekly chart has formed the second shooting star in a row. This does not suggest strength at this point, and I believe we are going to have to pay very close attention to the longer-term big picture. The stimulus was the original driver of oil going higher, but quite frankly the “reflation trade” is starting to find some doubters now.

Crude Oil Video 25.01.21

Brent

Brent markets also fell during the trading session on Friday, breaking below the $55 level one point. We have formed a bit of a hammer, so this shows that there continues to be a bit of resiliency in this market. Having said that, this also has formed a couple of shooting stars and I think it is only a matter of time before we break down. This is mainly due to the fact that stimulus looks to be very threatened at the moment, not necessarily as to whether or not it is going to happen, but how big it is going to be. If we can break down below the bottom of the candlestick for the Friday session, then I think we go looking towards the 50 day EMA underneath which sits just above the $50 level.

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