Crude Oil Price Forecast – Crude Oil Markets Continue to Go Sideways

Crude Oil Prices Forecast Video for 07.04.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Thursday, as we continue to hang around the 200-Day EMA. Ultimately, the 200-Day EMA is a longer-term technical indicator that a lot of people pay close attention to. If the market breaks above there, it would obviously be very bullish, but at this point we still have a major gap underneath that has to be filled. I suspect this is a market that will eventually fill that gap, especially considering that the reason we gapped higher was due to an emergency production cut.

OPEC will have to worry about a lack of demand, and typically speaking, months later after a cut like this price falls, you will see prices drop, because it is a reaction to significant stagnation and demand. Ultimately, if we can break down below the last couple of candlesticks, I am more than willing to short this market, at least for a short term move. Whether or not we break through the gap is a completely different question. If we break above the 200-Day EMA, then it’s possible that we could go to the $90 level.

Brent Crude Oil (UK) Technical Analysis

Brent markets have also gone back and forth during the trading session, sitting right around the $85 level. The 200-Day EMA is sitting just above there at the $87 level and will offer a formidable barrier. If we can break above the $90 level, then we will continue to go much higher, perhaps reaching the $95 level.

Just as we have in the WTI grade of oil, we have a gap underneath, which extends down to the $80 level. If we can break down below the last couple of candlesticks, then it’s likely that we could go lower. Ultimately, this is a market that I think continues to see a lot of volatility, and a lot of questions as to whether or not we are going to see economic demand going forward as the global slowdown certainly could put more negativity in the energy markets. Ultimately, this is a straightforward set up, but we don’t have the impulsive candlestick in order to start putting money to work in this market.

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