Crude Oil Price Forecast – Crude Oil Continues to Pressure Resistance

Crude Oil Prices Forecast Video for 31.07.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market exhibited a strong rally during Friday’s session, making significant strides towards breaking above the crucial $80 level. If this breakthrough occurs, it could potentially pave the way for further advancement towards the $82.50 level. Importantly, the presence of the 200-Day EMA above the current price reinforces the argument for an ongoing uptrend. Traders may view pullbacks as potential buying opportunities, particularly around the 200-Day EMA, making it a vital indicator to keep a close eye on.

Additionally, the market has recently formed a massive bullish flag pattern, which has caught the attention of many technical traders who are now entering long positions. Based on this pattern, there is a possibility of WTI reaching as high as $87, should the bullish momentum continue to unfold.

Brent Crude Oil Technical Analysis

In a similar vein, the Brent markets also experienced a rally, with prices nearing the $83.50 level. While Brent is currently trading just above the 200-Day EMA, indicating a slightly less bullish outlook compared to WTI, overall sentiment remains positive. The notion of Brent acting as a “makeup trade,” catching up with the WTI market, is plausible, which further reinforces the potential buying opportunities presented by short-term pullbacks.

Given the prevailing bullish characteristics in both WTI and Brent, traders are advised to exercise caution when considering short positions. Currently, buyers seem to be more focused on the impact of OPEC production cuts, which continues to support the positive sentiment in the market. However, it is crucial to closely monitor the 50-Day EMA, as a breakdown below this level could trigger further selling.

Considering the potential for a significant upward movement, traders are encouraged to practice patience and look for value in this clearly bullish market. In the case of Brent, the recently broken bullish flag pattern could indicate a potential advance to the $92 level.

At the end of the day, the crude oil markets displayed a robust rally during Thursday’s trading session, signaling the possibility of an imminent breakout for both WTI and Brent. The presence of technical indicators, such as the 200-Day EMA and the formation of a bullish flag pattern, has attracted traders to enter the market with buy positions. While short-term pullbacks may present buying opportunities, caution is advised for short positions, as positive market sentiment driven by OPEC production cuts remains strong. As traders continue to monitor market dynamics, potential value and upward movements offer compelling prospects in this bullish market.

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