Crude Oil Price Forecast – Crude Oil Markets Continue to Consolidate

Crude Oil Prices Forecast Video for 31.10.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market had initially rallied during the trading session on Friday, slamming into the 50-Day EMA. The 50-Day EMA sits right around $85 level, therefore it makes a certain amount of sense that there will be a bit of a barrier there. If we can break above that level, then it’s possible that the crude oil market could go looking to the $90 level after that. I believe that the $90 level of course would make a nice target as it has been a target in the past, and it is a large, round, psychologically significant figure in and out of its own right.

Underneath, we have the 200-Day EMA sitting near the $81 level and rising. The 200-Day EMA is an indicator that a lot of longer-term traders pay attention to. As long as we can stay above that level, then it makes a certain amount of sense that we would look at this through the prism of an uptrend. Furthermore, we have a lot of concerns when it comes to geopolitical noise coming out of the Middle East.

Brent Crude Oil Technical Analysis

Brent markets initially tried to rally as well but gave back gains to show signs of weakness. By doing so, the market looks as if it is still trying to sort out where it wants to go longer-term, as we are bouncing around between the 50-Day EMA and the 200-Day EMA indicators. That being said, you should also keep an eye on the overall attitude of risk appetite, as the Brent market of course is highly influenced by it. If we were to break down below the $85 level, then the Brent market could fall apart rather quickly. I’m not necessarily calling for this, but it does look like the buyers are having a hard time hanging on the gains in the short term.

If we turn around and break above the $90 level, that would be a very bullish sign, sending Brent looking toward the $95 level as well, perhaps even higher than that. All things being equal, this is a market that is going to continue to move on the latest headlines coming out of Israel and Gaza.

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