Crude Oil Price Forecast – Crude Oil Markets Give Up an Early Gain

Crude Oil Prices Forecast Video for 04.07.23

WTI Crude Oil (US) Technical Analysis

The US Oil, or West Texas Intermediate Crude Oil market, has initially tried to rally during the trading session on Monday, but struggled at the 50-Day EMA yet again. The market ended up forming a bit of a shooting star in what is probably thin trading. After all, Tuesday is the Independence Day holiday in the United States, and that makes quite a bit of sense that we would see the market be thin for the session on Tuesday, as it makes it difficult for traders to put any serious money to work. Nonetheless, when you look at the chart, we have been grinding lower, and the question now is whether or not we are going to break down through.

If we do break above the 50-Day EMA, then it’s possible that the market could go looking to the $75 level. The $75 level is the top of the overall range, and therefore if we broke above there, then crude oil could go much higher. On the other hand, the market could go down to the $65 level, where it would find quite a bit of support. As things stand right now, I think we go back and forth.

Brent Crude Oil (UK) Technical Analysis

Brent initially tried to rally during the trading session on Monday, testing the 50-Day EMA before giving back gains. Ultimately, this is a situation where we see a lot of noisy behavior, and I think we consolidate over the next several weeks, with the $70 level underneath offering support. The $80 level above offers significant resistance. With that being said, the market is likely to continue to see a lot of back-and-forth trading over here as well, especially as we have to take into account the idea that the global economy might be slowing down, which works against the value of crude oil. Still, at the same time, you have to look at this through the possibility of a market that has somewhat of a strict supply chain as well. With this, the market continues to see a lot of noisy behavior more than anything else, so keep your position size reasonable.

For a look at all of today’s economic events, check out our economic calendar.