Crude Oil Price Forecast – Crude Oil Markets Drop After PMI Numbers Disappoint

Crude Oil Prices Forecast Video for 24.08.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has fallen rather significantly during the trading session, losing 2% early. That being said, a lot of this comes down to the lack of strength in the European and British economies, as measured by PMI numbers. Furthermore, we may have been a little overextended, so I think at this point in time a bit of profit-taking makes sense.

We are currently hanging around the 200-Day EMA, as well as the 50-Day EMA. In other words, it does make a certain amount of sense that we would see a little bit of technical support. That being said, it also makes a certain amount of sense that it’s just the moving average, and it’s not necessarily something that you can put a lot of faith in, it’s just yet another reason to think that buyers might come back in. If we turn around and break above the $80 level, that would obviously be a very strong sign that we are probably going to go looking toward the $85 level.

Brent Crude Oil Technical Analysis

Brent markets have also fallen, slicing through the 200-Day EMA by the time New York traders came online. That being said, this is a market that I think continues to see a lot of noisy behavior, perhaps trying to get down to the 50-Day EMA. The 50-Day EMA being broken below could open up and move down to the $80 level. The $80 level of course is a large, round, psychologically significant figure, and therefore we need to pay close attention to it.

The candlestick for the session on Wednesday suggests that we are going to continue to see a lot of noisy behavior, but if PMI numbers in the United States come out stronger than anticipated, that could turn things right back around. All things being equal, this is a situation where I think you have to look at this through the prism of a pullback, but not necessarily a massive one. We will have to wait and see, but I think that you are probably better served waiting until the end of the week to make a tactical decision as I see nothing but noise at the moment.

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