Crude Oil Price Forecast – Crude Oil Markets Bounce Hard After Initial Plunge

Crude Oil Prices Forecast Video for 05.05.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market fell rather hard early on Thursday, but then turned around to form a massive bounce on this candlestick. The $65 level seems to be like a hard floor, and therefore it’s likely that we will continue to see plenty of follow-through, at least for the short term bounce. The way this played out on the short term charts leads me to believe that somebody rather big just jumped into the market. It’s possible that OPEC got involved in order to put a little bit of a floor in a market that has collapsed, or perhaps it has something to do with the United States finally doing something to refill its Strategic Petroleum Reserve. Either way, the $65 level looks to be a hard floor at the moment.

With that being said, some type of bounce here with signs of exhaustion should be a nice selling opportunity, and therefore the next couple of days might be more or less for observing than anything else.

Brent Crude Oil Technical Analysis

Brent has also fell rather significantly during the course of the early hours on Thursday, breaking below the $70 level. However, we have turned around to bounce back above $72, and it does suggest that perhaps we are going to see the same type of action in this market, with a couple of days of recovery, and then a potential selling opportunity. Ultimately, this is a situation where you were looking for higher levels in order to start shorting on signs of exhaustion, unless of course something fundamentally changes.

If you are a short-term trader, then you can take a risk to the upside I suppose, but clearly you are fighting the overall trend, but it’s also worth noting that we just bounced off an area that has been long term support. The next couple of sessions should be very noisy, but on some type of exhaustion candle on the daily timeframe, I will not hesitate to start shorting again.

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