Crude Oil Price Forecast — Crude Oil Markets Give Up Momentum

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market initially tried to rally during the trading session on Wednesday but gave back gains rather quickly. The 200-day EMA has given back quite a bit of momentum, and it looks as if the sellers are coming into the market to send oil prices lower. In fact, you can even make an argument that we are in a bit of a downtrend in general, but we also had recently broken through a falling wedge. In other words, the market is likely to continue to see a lot of noisy behavior, and with the 50-day EMA falling toward the 200-day EMA, it suggests that we could be close to forming a “death cross.”

Crude Oil Prices Forecast Video for 25.08.22

Brent Crude Oil Technical Analysis

Brent markets have also tried to rally slightly during the trading session on Wednesday as the 50-day EMA has come into the picture, showing signs of exhaustion. If we break down below the bottom of the candlestick for the day, it’s likely that the Brent market will then drop down to the 200-day EMA.

The 200-day EMA of course will attract a certain amount of attention and could serve as support, but ultimately, I think that the market is more likely than not to continue going lower over the longer term. That said, there are a lot of noisy crosswinds at the moment due to OPEC suggesting that they are going to make cuts, while at the same time Iran gets a potential opportunity to start selling oil again. In other words, this is a market that I think continues to be very noisy, and therefore needs caution.

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