weekly crude oil forecast
WTI Nymex Crude oil prices tested 12 years low as it slips below 30$ . It even closed below 30$ as weekly closing came 29.60$ . Main problem with crude oil is pressure on demand . China already lost approx more than 40% of gains from its peak as it shanghai composite index ( SHA:000001 ) closed at 2900 last friday . Second problem with falling prices is iran . Sanctions on iran ends last week and its ready to boost production to export .
While crude oil sinking beneath 12 years low . OPEC is in no mood to take action against falling prices . OPEC wants to destroy US shall oil production and its succeding pretty well but its a two edged sword . Its destroying economy of oil producer’s economy . Rich countries like saudi arbia and iran is surviving due to their large cash . But small countries already started sinking .
This weekit need to survive 27.30$ level . If sellers manage to break this weekly support and close below this level . Then technically it could test upto 25.20$ – 23$ this week .
A good resistance on chart at 32.20$ . If buyers manage to break this hurdle and close above our resistance . Then expect it to zoom upto 34.90$ – 37$ this week .
Weekly crude oil forecast conclusion : Main problem is over production . So leave technical aside . Just keep an eye on news . If some news regarding production comes then it could test major lows or highs .
Its in highly volatile zone so if you wish to trade in this black gold then you must be very cautious and use a very strict stoploss .
More will update to our trading signal subscribers .