Crude Oil Price Forecast – Crude Oil Markets Get Close to Filling the Gap

Crude Oil Prices Forecast Video for 24.04.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market rallied a bit during the trading session on Friday, as we have bounced from the 50-Day EMA. More importantly, we also found the gap to close it, therefore it looks like we have essentially changed everything to a potential bullish stance. That being said, keep in mind that the market is going to remain very volatile, as the decision by OPEC to cut 1.6 million barrels per day has sent the market much higher, but since then we have turned around to show signs of negativity again.

That being said, the 200-Day EMA sits a bit below the $82 level, I think that will come into the picture as well, as it will provide a bit of technical resistance and of course there has been a certain amount of selling. The question at this point is whether or not the rally has been more a function of short covering ahead of the weekend.

Brent Crude Oil Technical Analysis

Brent markets also bounced a bit during the course of the trading session but remained below the 50-Day EMA. This market has essentially filled the gap as well, so there is a certain amount of pressure because of that. Looking at this chart, we could find ourselves going back and forth in this general vicinity, as we try to sort out what happens next. Remember, OPEC cutting production did help boost price, but at the same time you have to ask whether or not the cartel sees something ugly ahead, perhaps some type of major recession.

If the market were to price in some type of recession, that would send pricing of oil lower, as demand will drop quite significantly. Either way, I think this is a situation where the market will have to make major decisions soon, but Monday may be more or less a choppy and volatile sideways day based upon where we are right now. The $80 level underneath of course would be important from a psychological standpoint, so giving that up to the downside would send this market much lower. On the other hand, this is a scenario where short-term pop could have the market looking toward the $85 level.

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