Crude Oil Price Forecast – Crude Oil Markets Continue to Break Out

Crude Oil Prices Forecast Video for 31.08.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Wednesday, as we continue to see a lot of noisy behavior. That being said, I do think that it is probably only a matter of time before we go looking to the $85 level. Short-term pullbacks continue to be buying opportunities, and it now looks to me like the $80 level is going to be supported underneath. In fact, the 50-Day EMA looks as if it is getting ready to break above the top of the 200-Day EMA indicator. We are just now breaking out of a bullish pennant, so I think this all lines up quite nicely.

It’s not until we break down below those moving averages, closer to the $78 level, that I could look at this through a prism of negative pressure. In general, I think that short-term pullbacks will continue to attract value hunters, and it is probably only a matter of time before people take advantage of it.

Brent Crude Oil Technical Analysis

Brent markets have also rallied a bit during the trading session on Wednesday, breaking out of a bullish flag. At this point, it looks as if the market leaving the $85 level could open up the possibility of a move to the $87.50 level above. I do think we get there eventually, and then break above that level as well. We have a whole host of reasons to think that the market is going to continue to go higher, not the least of which of course is the fact that OPEC is cutting back production. Furthermore, the Americans have to replace the Strategic Petroleum Reserve, which means that the US government is a major buyer regardless.

Just as in the WTI grade of crude oil, it’s not until we break down below the moving averages that I would look at this through the prism of something that I could short, and even then I would probably wait until Brent breaks down below the $80 level. With this, be cautious but look for value and take advantage of it as it occurs.

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