Crude Oil Price Forecast – Crude Oil Continues to Threaten 50-Day EMA

Crude Oil Prices Forecast Video for 06.07.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has rallied significantly during the trading session on Wednesday, as traders have returned from the Independence Day holiday in the United States. The 50-Day EMA has offered a bit of dynamic resistance, and it looks as if we are trying to take on that major technical indicator. If we were to break above that level, it opens up the possibility of a move to the $75 level, which is the top of the overall consolidation region. That being said, I think it would only offer a better opportunity to start shorting this market.

If the market were to break down from here, I believe the $67.50 level offers a certain amount of support, followed by the $65 level. The $65 level is a large, round, psychologically significant figure in an area where we have seen quite a bit of trading action previously. As things stand right now, it looks like we are going back and forth more than anything else.

Brent Crude Oil Technical Analysis

Brent markets have rallied a bit during the trading session on Wednesday as well, and they are also testing the 50-Day EMA. The $77.50 level has been resistance previously, and then you have the $80 level above there, offering a significant amount of resistance. Underneath, we have the $71.50 level offering support that extends down to the $70 level. Much like the WTI grade of crude oil, I think Brent will continue to go back and forth. Ultimately, I think we are essentially stuck in a bit of a “summer range”, which is quite common in the crude oil markets.

I think at this point, we are more likely than not going to be somewhat range bound, and therefore I think you have to look at this through the prism of short-term movement, perhaps using some type of oscillator for your setups. It’s quite common to see the markets do this during the summertime, so I think nothing is out of sorts here, and that we are just going to hang around and try to figure out where to go next.

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