Crude Oil Price Forecast – Crude Oil Markets Bounce Into the Weekend

Crude Oil Prices Forecast Video for 08.05.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Friday, heading into the weekend on the right foot. That being said, the market looks as if it is probably still going to be very negative but you cannot help but notice that we did just form a bit of a “double bottom.” It’s also worth noting that the $65 area, the area we bounce from, is a technical area of previous support multiple times, so the question now begins to be asked, “Have we seen the bottom?” I think it’s too early to make that decision, but we are most certainly a market that has just seen a major turnaround at a significant technical level.

All that being said, I still favor fading rallies that show signs of exhaustion, especially the closer we get to the 50-Day EMA. I think another question that needs to be asked is whether or not we just found the summer range.

Brent Crude Oil Technical Analysis

Brent markets of course have done basically the same thing during the trading session on Friday, breaking back above the $75 level. Brent found quite a bit of support at $70 during the day on Thursday, and since then have rallied quite significantly. I believe that we are in the same type of market in Brent that we are in WTI, meaning that it is probably still more or less a “fade the rally” type of situation, but I think it’s also a scenario where you may find buyers jumping into the market and taking advantage of cheap crude oil after massive selloffs like we had just seen. The 50-Day EMA is a bit above the $80 level, and that could be the resistance barrier that traders will be focusing on going forward.

Either way, I think you are going to see a bit of a fight from the Brent market, as it had been so oversold. Whether or not we can turn the entire trend around is a completely different question of course, but right now it appears that we are at least trying to mitigate some of the massive damage that we have seen.

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