Crude Oil Price Forecast – Crude Oil Markets Continue to See Noise

Crude Oil Prices Forecast Video for 31.10.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil fell a bit during the trading session on Monday to kick off the week, as we continue to consolidate below the 50-Day EMA, and above the $82.50 level, and perhaps even more specifically, the 200-Day EMA indicator. All things being equal, this is a market that continues to be very noisy, and of course has a lot of external pressures that are driving everything.

There’s obviously a lot of concerns about the war in the Middle East, but we also have concerns about whether or not supply will be able to flow due to the fact that OPEC has been cutting production. On the other side of the equation, we have the strengthening US dollar, and of course concerns about the global growth picture. In other words, we are more likely than not to see a lot of noise around this market. All things being equal, I think this is a market that continues to look for some type of directionality in the short term, so therefore you need to be very cautious about your position size, but if we can break back above the 50-Day EMA, I think it opens up a run toward the $90 level.

Brent Crude Oil (UK) Technical Analysis

Brent also pulled back during the trading session, as we are sitting on top of the 50-Day EMA indicator in this market. The $90 level above will continue to cause a lot of resistance, and if we can break above there, then it opens up the possibility of a move to the $92.50 level. Underneath, we have the 200-Day EMA offering a significant amount of support near the $85 level, which obviously is a large, round, psychologically significant figure. I also believe that it is the “floor in the market”, so any move toward the $85 level will more likely than not attract a lot of attention.

All things being equal, I think this is a market that you need to trade more or less from a range bound perspective, and on shorter-term charts. It’s very difficult to hang onto a bigger position at this point, as the latest headline coming out of dollars could send the oil markets reeling.

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