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Crude Oil forecast for the week of May 2, 2016, Technical Analysis

By:
Christopher Lewis
Published: Apr 30, 2016, 04:29 UTC

WTI Crude Oil   The WTI Crude Oil market rose during the course of the week as we continue to see buyers flood into this market. Not only do we have

Crude Oil forecast for the week of May 2, 2016, Technical Analysis

WTI Crude Oil

 

The WTI Crude Oil market rose during the course of the week as we continue to see buyers flood into this market. Not only do we have drillers stepping away from the fields, but demand could now be starting to pick up slightly. Ultimately, the market should also have to deal with the fact that the US dollar is falling. With that being the case, it’s likely that the market will try to go higher, but this is an area that has quite a bit of resistance, so having said that it is more than likely going to be easier to trade this market based upon short-term charts than long-term charts as there will be a lot of volatility regardless of what happens next.

 

Brent

Brent markets rose during the course of the week, breaking above the $47 level. There is a significant amount of resistance above the $50 handle though, so having said that it looks as if there is resistance all the way from there to the $52 handle as well, so having said that it is probably going to be difficult to trade this market from the longer-term charts as well. Short-term moves will probably be what we see next, and with that being the case, market players will more than likely be bullish based upon the falling US dollar, but there so much in the way of noise and order flow above that it’s difficult to imagine that the move will be easy. With this, short-term traders will probably be attracted to this market but long-term traders will probably step to the side.

If we did get an exhaustive candle in this region though, that could be a selling opportunity from the longer-term as it would be a continuation of the downtrend that we’ve seen. However, at this point in time we don’t have much to work with, so we will look to the shorter-term charts until we get a longer-term candle giving us some type of direction in this marketplace.

Brent weekly chart, May 2, 2016
Brent weekly chart, May 2, 2016

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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