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Crude Oil Weekly Price Forecast – Crude Oil Markets Have Strong Week

WTI Crude Oil

The West Texas Intermediate crude oil market rallied significantly during the week, reaching towards the $40 level. It should be noted that the $41 level is the top of the gap that we are in, so I think at this point the risk to reward ratio for a longer-term trader is probably a bit poor. However, if we can break above the $41 level then it is likely that we go looking towards the $50 level. If we see signs of exhaustion near the $41 level, it could be a selling opportunity to reach back towards the $35 level I think the only thing that you can count on here is a lot of choppy trading.

WTI Oil Video 08.06.20

Brent

Brent markets have broken above the $40 level during the week, which is a very bullish sign. The $40 level had been a real thorn in the side for buyers, and now that we are clearly above there it is likely that we will fill the gap, meaning a run towards the $45 level. The candlestick closing towards the top of the range is also helpful, so at this point it is likely that we will continue to see a lot of momentum for continuation. This is especially true considering that the Brent market is especially sensitive to many of the OPEC countries, which look set to cut back production even further. A favorable jobs number in the United States of course helps the idea of demand picking up has an investable thesis as well.

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

This article was originally posted on FX Empire

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