Crude Oil Price Forecast – Crude Oil Markets Continue to Rally

Crude Oil Prices Forecast Video for 21.12.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market rallied rather significantly during the trading session yet again on Wednesday, as we slam into a major resistance barrier. The $75 level is an area that has previously been important, and therefore it’s likely that we will see a lot of noise in this area. The 50-Week EMA above is going to offer some resistance as well, so I think it’s probably only a matter of time before we see a bit of downward pressure. But frankly, at this point in time, it is very likely that the market is going to slow down as we see liquidity exit the market.

All things being equal, this is a situation where there could be a lot of short covering that has occurred in this market, so that’s part of what the balance is. We are at the top of the overall range between $75 and $68 below, and this might be the market trying to carve out consolidation or even an accumulation phase for next year.

Brent Crude Oil Technical Analysis

Brent markets have pierced the $80 level during the trading session on Wednesday, as we are approaching the 50-Day EMA. Ultimately, the market is likely to continue to see a lot of noisy behavior, but I also think that we are getting a little overdone to the upside. With that being the case, a little bit of a pullback makes sense, and I think we are seeing short covering has been a major factor on what’s happened recently, and now it’s probably only a matter of time before downward pressure continues to be an issue.

The market losing a lot of momentum does make a certain amount of sense in the short term, but I think at this point in time we are going to continue to see overall consolidation, and much like the WTI Crude Oil market, we may be trying to hang around in the accumulation phase. The $72 level underneath is a major support level, and of course now that we are hanging around the $80 level it suggests that we are going to see a little bit of overall downward pressure.

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