Crude Oil Weekly Price Forecast – Crude Oil Race Towards Resistance

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially pulled back during the week but then found enough buying pressure to reach towards the crucial $50 level. This is an area that obviously will attract a certain amount of attention from a psychological standpoint, but it should also be noted that the 200 week EMA is sitting just above. That technical indicator widely my longer-term traders, so it does make sense that we would see interest in taking profits rather soon. On the other hand, we have stimulus coming out of Washington DC and that should drive up demand. The next week is going to be a bit irrelevant, due to a major lack of liquidity is Christmas is at the end of the week.

Brent

Brent markets rallied during the trading week to break above the $50 level almost immediately and is starting to close out the candlestick for the week at the very top of the range. This normally denotes that there will be continuation going forward, and as a result should go looking towards the 200 week EMA at the $56.32 level. I do believe that given enough time we probably see buyers jumping in to pick up value every time we pull back, but this week of course is going to be Christmas week so I would not read too much into the price action. The fact that we are closing at the very highest does tell you that there is still momentum going forward, and therefore I do believe that we will extend given enough time. A pullback certainly would make sense in the short term, but I do think that we still have further to go to the upside before it is all said and done.