Crude Oil Price Forecast – Crude Oil Markets Continue to Recover

Crude Oil Prices Forecast Video for 09.05.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Monday, as we continue to recover from the massive plunge lower. Ultimately, this is a market that I think continues to see a lot of back-and-forth and I think we are trying to figure out the summer range. The crude oil markets typically do find some type of summer range, and the recent crash has certainly been a bit exaggerated. I think at this point, it makes a lot of sense that the $65 level is your floor.

Just above, the 50-Day EMA sits right around the $76 level, so that could offer a certain amount of resistance and signs of exhaustion could be jumped on for shorting opportunities. If we can break above there, then the 200-Day EMA comes into the picture near the $81 level, and the $82 level is the top of the overall range that I see trying to form for the market.

Brent Crude Oil Technical Analysis

Brent markets have also continued to recover a bit during the trading session on Monday, but just like the WTI Crude Oil market, you have the 50-Day EMA sitting above, near the $80.50 level, and of course the 200-Day EMA at the overall range that we have been in. At this point, the market is likely to continue seeing the area right around the $86 level as a major ceiling, so I don’t think we break above there anytime soon. This will be especially true if we are going to see markets continue to deal with a slowing global economy.

Alternatively, if we can break down below the $70 level, that could open up a huge flush lower, but I think that might be the bottom of the overall range for the summer, as we continue to try to digest a lot of different questions at the same time. On a rally, I would be looking for signs of exhaustion that I can start selling, because clearly the easiest strategy has been shorting oil over the last several months, and I think that probably continues to be the case. Regardless, keep in mind that the market is likely to be very noisy, so practice position sizing carefully.

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