Crude Oil Price Forecast – Crude Oil Markets Are Looking for Support at the Gap

Crude Oil Prices Forecast Video for 25.04.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market has found a little bit of support near the 50-Day EMA as we continue to see a lot of noisy behavior. All things being equal, this is a situation where we are at the gap and trying to figure out whether that gap will hold. The market will continue to see a lot of noisy behavior, but it does make sense that we would see buyers step into this market as gaps tend to offer support. Remember, OPEC decided to cut 1.6 million barrels per day as far as production is concerned, and that’s why we gapped initially. The question now is whether or not people are going to believe that OPEC can influence price or if the simple lack of demand is going to overcome the market. In the short term, I anticipate this market will bounce around in this vicinity. However, if we were to break down below the $75 level, then we will start to sell off quite drastically.

Brent Crude Oil (UK) Technical Analysis

Brent also looks like it is trying to find support at the previous gap, but unlike WTI, it’s below the 50-Day EMA. The $80 level is not only a psychologically important level in this market, but it’s also where the gap took off from, so I think it all comes together quite nicely as a short-term floor. If we were to break down below there, then the market is likely to go looking to the $75 level, possibly even the $72.50 level. If we do rally from here, the $84 level will be a significant resistance level, so if we were to break above there then I think the market goes looking to the 200-Day EMA, which sits right around the $87 level. Breaking above that indicator could open up $90, and of course $90 opens up a much bigger move. I think the next couple of days will be crucial, but they will more likely than not be very noisy as a result due to the fact that we are trying to determine the longer-term trend at this point.

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