Crude Oil Price Forecast – Crude Oil Continues to Undulate

Crude Oil Prices Forecast Video for 18.07.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Monday, as we have seen a lot of volatility early this week. Traders are starting to try to sort out as to whether or not the OPEC production cuts are going to continue to drive prices higher, or if they are going to fall flat on their face as lack of demand overtakes the market.

At this point, it’s probably worth noting that the market is trading between the 200-Day EMA above and the 50-Day EMA below. This is typically an area that shows a lot of noise and volatility. Furthermore, we are hanging around the $75 level. I anticipate that this market continues to see a lot of noisy behavior, but I do think that the 50-Day EMA offers a significant amount of support, and that we probably go more sideways than anything else.

Brent Crude Oil Technical Analysis

Brent markets also have gone back and forth during the course of the trading session, as we are hanging around the $80 level. The $80 level is of course a large, round, psychologically important big figure, and a lot of people will be paying close attention to it. The size of the candlestick is rather big, but if we were to break out of it that could see the market really start to take off in one direction or another. After all, momentum is the big driver of markets right now, and therefore I think we’ll have to wait until we break out of these moving averages. If and when we do, then it’s likely that we have a couple of targets in mind.

For example, if we were to break out above the 200-Day EMA, then the $85 level will be targeted. On the other hand, if we break down below the 50-Day EMA, it’s possible that we could go down to the $72 region. Either way, I do anticipate the oil markets will be very noisy over the next several weeks, as we tried to sort out the next major direction going forward. In general, I think position sizing will be crucial more than anything else.

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