Crude Oil Price Forecast – Crude Oil Market Points to Potential Upside Breakouts

Crude Oil Prices Forecast Video for 01.08.23

WTI Crude Oil Technical Analysis

During Monday’s trading session, the WTI market inched closer to a critical level at $80, signaling the potential for further advancement towards $82.50. The presence of the 200-Day Exponential Moving Average above the current price reinforces the ongoing uptrend, making pullbacks around the 200-Day EMA attractive buying opportunities for traders.

Adding to the bullish sentiment is the formation of a massive bullish flag pattern in the WTI market. Technical traders have taken notice and are entering long positions, with some speculating that WTI might reach as high as $87 if the current bullish momentum persists. That being said, it is likely that that market will continue to be very noisy, but it looks like the markets are trying to build up the pressure to send this thing higher. That being said, it is likely that you will be looking to buy on the short-term dips.

Brent Crude Oil Technical Analysis

Similarly, the Brent market experienced a rally, with prices nearing the $83.50 level. While Brent is currently trading just above the 200-Day EMA, implying a slightly less bullish outlook compared to WTI, overall sentiment remains positive. Some traders view Brent as a “makeup trade,” catching up with the WTI market, which presents potential buying opportunities on short-term pullbacks.

However, it’s important to exercise caution due to the lingering issue of volatility in the Brent market, given the ongoing debate about growth versus OPEC cuts.

Given the prevailing bullish characteristics in both WTI and Brent, caution is advised when considering short positions. The focus among buyers revolves around the impact of OPEC production cuts, which continues to provide support to positive market sentiment.

To manage risk effectively, traders should closely monitor the 200-Day EMA, as a breakdown below this level could trigger further selling pressure. While short-term pullbacks might present enticing buying opportunities, prudence is essential for those contemplating short positions, given the strong market sentiment stemming from OPEC production cuts.

Considering the potential for significant upward movement in both WTI and Brent, traders are encouraged to exercise patience and seek value in this clearly bullish market. In Brent’s case, the recently broken bullish flag pattern suggests a potential advance towards the $92 level, presenting an attractive target for traders.

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