Crude Oil Price Forecast – Crude Oil Markets Continue to Threaten a 50-Day EMA

Crude Oil Prices Forecast Video for 22.06.23

WTI Crude Oil (US) Technical Analysis

US Oil, or the West Texas Intermediate Crude market, rallied again during the trading session on Wednesday, as we are threatening the 50-Day EMA. By doing so, the market continues to look at the 50-Day EMA as potential dynamic resistance, but at this point in time, I think we have a situation where the market is simply trying to figure out where it’s going next, and it is in a form of consolidation. That doesn’t mean that it has to be a “perfect rectangle”, but we are clearly trying to decide which direction to go from the longer-term standpoint.

On the upside, you can make an argument for $75 being significant resistance, while you can make an argument for the $67.50 level underneath being significant support, perhaps extending down to the $65 level. In other words, we remain range bound.

Brent Crude Oil (UK) Technical Analysis

Brent also is currently wrestling with the 50-Day EMA, but has a ceiling in the market closer to the $80 level, with the $71.50 level underneath being significant support. Ultimately, this is a situation where we just don’t know where to go next, and it does make a certain amount of sense that we would be trading the way we are, due to the fact that summer is typically a range bound time of year, and that is starting to play out yet again this year. With this, I think the $70 level underneath is the absolute floor in the market, and any breakdown below that level would probably be a big deal at this point, allowing fear to take over most markets, not just this one. If that was in fact the case, then I think we’ve got a situation where the trading environment suddenly becomes quite different.

All things being equal, this is a market that I think is probably one that range bound traders will like a lot this summer, until we get some type of clarity going forward. There are a lot of crosswinds at the moment, which also helps the idea of it being range bound. With this, position sizing will be everything.

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