Crude Oil Weekly Price Forecast – Crude Oil Markets Continue Attempted Recovery

WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied during most of the week, gapping higher on Monday and reaching towards the $27.50 level. Ultimately, there does seem to be a lot of resistance at the $30 level, so I think it is only a matter of time before we probably see a lot of selling. Quite frankly, the market has gotten a bit ahead of itself when it comes to the recovery, but then again it probably had gotten oversold. Ultimately, this is a market that the traders are probably doing a lot of short covering in, but I still see massive resistance above. I anticipate that the market drops from here back towards the $20 level.

WTI Oil Video 11.05.20

Brent

Brent markets rallied during the week as well, breaking above the $30 level. That is an area that has been resistive in the past, and it should be noted that even though we have seen a nice move to the upside, the reality is that we are still very much in a bearish market. Yes, while the talking heads talk about the great recovery in crude oil so far, all one has to do is look at the longer-term weekly chart to show signs of just how bad the market is for crude oil and how far we have to go before we see signs of real strength. Fading rallies should continue to work, but we may need to rally a little bit further in order to get the opportunity.