Crude Oil Price Forecast – Crude Oil Continues to Stare Down the 50-Day EMA

Crude Oil Prices Forecast Video for 05.07.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Tuesday, but you should keep in mind that it was Independence Day in the United States, so we had very limited electronic trading. In other words, I would not read too much into the candlestick, but it does suggest that the 50-Day EMA offers resistance, and as long as we can stay below there, we will continue to see plenty of selling pressure. That being said, even if we were to break above the 50-Day EMA, then the $75 level above is the next major resistance barrier, as it is a large, round, psychologically significant figure, and an area where we’ve seen some resistance in the past.

On the downside, the $67.50 level is major support, extending all the way down to the $65 level. That offers a bit of a hard floor in the market, so I would be a bit surprised to see the market break down below there. In the meantime, I think we are looking more or less at a back-and-forth type of trading environment.

Brent Crude Oil Technical Analysis

Brent markets have rallied as well, and it looks as if it is trying to take out the 50-Day EMA. If it can, then we could make a move toward the $80 level, which is a large, round, psychologically significant figure that a lot of people would be paying close attention to. On the other hand, if we break down below the bottom of the Monday candlestick, then it’s likely that we could go down to the $72 region, an area that has offered a significant amount of support. Breaking down below that opens up the possibility of a move down to the $70 level, which is the floor in the market right now.

That being said, I still think we are essentially range bound, and despite the fact that we seen a little bit of bullish pressure of the last couple of days, it’s nothing new and it appears to me that the market will continue to struggle to hang on to gain, and I think we’ve got a situation where we remain in a tight consolidation phase in perhaps what could be thought of as “the summer range.”

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