Crude Oil Price Forecast – Crude Oil Markets Continue to Grind Upwards

Crude Oil Prices Forecast Video for 01.09.23

WTI Crude Oil Technical Analysis

The market for West Texas Intermediate (WTI) Crude Oil witnessed a steady increase on Thursday’s trading day, despite noticeable market volatility. Despite the ongoing unpredictable behavior, I am confident that the path to the $85 mark is a logical progression. Instances of short-term market declines consistently appear as appealing chances to buy, especially with the recent establishment of a support zone around the $80 range. An intriguing development is on the horizon: the potential crossover of the 50-Day Exponential Moving Average poised to exceed the upper threshold of the 200-Day EMA indicator. In tandem, a bullish pennant formation breach in the market appears to align favorably with the existing outlook.

My perspective on this scenario would alter only in the event of a breach beneath those moving averages, a scenario that might transpire closer to the $78 range. It’s at this specific juncture that I would adopt a cautiously negative standpoint. Broadly, my belief is that temporary pullbacks will persist in captivating investors interested in value, and it’s only a matter of time before such prospects are acted upon.

Brent Crude Oil Technical Analysis

In a parallel type of move, Brent markets also experienced a modest rally on Thursday’s trading day, marked by a breakout from a bullish flag formation. At present, signals point towards the possibility of surpassing the $85 level, potentially paving the way for an upward trajectory toward the $87.50 level. This projection seems imminent, with even more progress beyond this stage conceivable. My optimism is rooted in multiple factors, notably the production curtailment efforts undertaken by OPEC. It’s also worth highlighting the influence that the United States’ Strategic Petroleum Reserve replenishment initiatives could exert on the market, given the government’s substantial role in procurement.

Ultimately, it’s not until we break down below the moving averages that I would consider shorting this market, and quite frankly I don’t expect to see that anytime soon. The moving averages and the $80 level should continue to act as a favorable entry point, at least on short-term pullbacks. Giving those up would perhaps suggest that we are going much lower, but at this point in time it looks as if the market is going to continue to see a lot of noisy behavior, and perhaps more importantly, bullish behavior.

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