Crude Oil Price Forecast – Crude Oil Markets Continue to Toil in a Range

Crude Oil Prices Forecast Video for 27.02.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has fallen a bit during the trading session on Friday as we have seen quite a bit of noisy behavior. At this juncture, it looks like the market is going to continue to see a lot of negativity, but it’s worth noting that the $72.50 level has been significant support multiple times, so whether or not we can break down below there, it’s difficult to determine. Quite frankly, it looks like we don’t really have anywhere to be, so it’s a situation where we may have a lot of back and forth, with a 50-Day EMA near the $78.16 level offering a little bit of a magnet for price. Above, we have the $82.50 level offering resistance, so you need to be very cautious.

Furthermore, the 200-Day EMA sits just above the trading range that we have been in, and that of course will continue to be something the technical traders pay attention to. With the lack of global demand, we continue to have very conflicting signals for the oil market, because there’s no real reason to think this market is going to make a big move anytime soon.

Brent Crude Oil Technical Analysis

The Brent market has tried to rally initially during the trading session on Friday, but then gave back a significant amount of the gain to test the $81 level. At this point, the market continues to go back and forth in a range much like the WTI Crude Oil market and suffers from the same problems. To begin with, nobody’s really sure whether or not the global economy is going to kick off another round of demand anytime soon, and the Chinese reopening has been a bit of a dud.

The $77.50 level underneath should be support, just as the $90 level above should be resistance. Much like the WTI market, the 50-Day EMA sits right in the middle of this trading range, and therefore it looks like we have nowhere to be anytime soon. It’s worth noting that this range has set up quite comfortably, so range bound traders will probably continue to flock to the oil markets in general, because it has been rather reliable. However, once we break out of these ranges, we could get a $10 move rather quickly.

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