Crude Oil Price Forecast – Crude Oil Markets Get Slammed Again

Crude Oil Prices Forecast Video for 13.12.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has shown itself to be very negative during the trading session on Tuesday, as we continue to see a lot of negative pressure. All things being equal, it looks like the market is doing everything it can to price in the idea of a major recession, which of course means there will be a lot less demand for crude oil. Underneath, we have major support near the $67.50 level, and I think it’s probably a situation where you will see a lot of value hunters underneath, waiting to get involved and try to pick up “cheap oil.”

If we were to break down below there, then it’s likely that the bottom will fall out and the markets will price in something akin to Armageddon. I don’t necessarily look for that to happen, but it certainly seems as if we are still in a situation where traders are running scared.

Brent Crude Oil Technical Analysis

Brent markets also have fallen, and are currently looking at the $72 level as a major floor underneath. That is an area that I think you have to be very cognizant of, and I would of course pay attention to whether or not we break down through there. If we break down through the $72 level, things could be rather ugly, and at that point in time I think the market could go dropping down to the $70 level. The $70 level of course is a large, round, psychologically significant figure that would capture the attention of a lot of people so I think at that point in time you have to be aware that you could possibly see value hunting.

Regardless, we are heading into the holiday season, and that of course means that the markets are going to face a significant drop in liquidity. With this, I think you have to be very cautious and recognize that the one thing that you can control is your position sizing. This time of the year tends to be very tricky most of the time, and I just don’t see how that changes at this point.

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