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

Crude Oil Prices Forecast Video for 22-12-2023

WTI Crude Oil Technical Analysis

The West Texas Crude Oil market showed quite a bit of volatility during the trading session on Thursday as traders continued to sort out their positions heading into the holidays. We had recently tested the $75 level, but it looks like we are selling off from that area, which does make a certain amount of sense as it was previous support, and a certain amount of “market memory” could come into the picture.

What’s interesting is that this area is also an options barrier, so you have to pay attention to that as well. Furthermore, the 50-Day EMA has fallen and looks as if it is trying to get down to the $75 level. Underneath, the $68 level could be the target, but really at this point in time I think you’ve got a situation where we could test that area again, and part of what we have seen recently might be short covering as traders are trying to take profits home for the holidays.

Brent Crude Oil Technical Analysis

Brent markets also have been very noisy during the Thursday session, initially trying to break above the $80 level before turning around and showing signs of negativity. All things being equal, this is a scenario where I think you continue to see a lot of noisy behavior heading into the holidays, and the lack of liquidity will be a major issue for at least a week. Because of this, I would not read too much into the movement, other than we may have had some short covering over the last several days until Wednesday.

If we do turn around a break above the 50-Day EMA, then the market could go looking to the 200-Day EMA, an indicator that obviously attracts a lot of attention. If we were to break above the level, then obviously it could change the overall trend. Right now, though, it looks like markets believe that there is an oversupply of crude, and therefore it’s likely that we continue to see pressure, and of course the holiday season is very difficult to trade to begin with. Obviously, Monday is Christmas, and that will have the markets shot, but it’s pretty rare that a lot of big traders come in and start pushing the markets around between Christmas and New Year’s Day as well.

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