Crude Oil Price Forecast – Crude Continues to Trade Between Major EMAs

Crude Oil Prices Forecast Video for 25.07.23

WTI Crude Oil Technical Analysis

In Monday’s trading session, the West Texas Intermediate Crude Oil market showcased a strong rally, with prices inching closer to the critical 200-Day Exponential Moving Average. If a decisive breakthrough above this key level occurs, it could potentially trigger a more significant upward move, potentially propelling the WTI market towards the coveted $80 mark. However, it’s important to acknowledge that the market has been exhibiting a back-and-forth pattern between the 200-Day EMA and the 50-Day EMA for a considerable period. As a result, traders are exercising caution and refraining from making substantial investments ahead of the weekend.

Market analysts anticipate a supportive zone at the $75 level, as the market has repeatedly acknowledged its significance in the past. A breakdown below this level might lead to a test of the 50-Day EMA. Nevertheless, a breakout from this range appears unlikely in the short term due to the various crosswinds currently affecting the crude oil market.

Brent Crude Oil Technical Analysis

Meanwhile, Brent Crude Oil has also demonstrated bullish behavior, hovering around the psychological $80 level, which has attracted substantial attention, mirroring the scenario with WTI. Similar to its counterpart, Brent is oscillating between the 50-Day EMA below and the 200-Day EMA above. A breach above the 200-Day EMA could pave the way for Brent to approach the $85 level. However, the market continues to be characterized by high levels of volatility.

One crucial aspect deserving close observation is the apparent slowdown of the global economy, which suggests that the price of oil might lack significant momentum. Nonetheless, the recent production cuts implemented by the OPEC have exerted upward pressure on oil markets. With these two opposing forces continuing to influence the market, volatility is expected to persist, contributing to the current range-bound behavior. Given these uncertainties and the impending weekend, most traders may opt to await a clear breakout above or below the EMAs before committing to a trade in either direction.

In conclusion, the crude oil markets experienced a weak rally, yet remain confined within the constraints of the EMAs. For WTI, a decisive move above the 200-Day EMA could unleash significant upside potential towards the $80 level. Likewise, Brent’s potential breakout above the 200-Day EMA might propel it towards the $85 level. Nevertheless, market participants are urged to exercise caution due to the impact of the global economic slowdown and the influence of OPEC production cuts. Volatility remains a prominent feature in the market, making it prudent to adopt a range-bound approach for the time being.

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