Crude Oil Price Forecast – Crude Oil Markets Have Bullish Pressure on Tuesday

Crude Oil Prices Forecast Video for 27-12-2023

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market rallied rather significantly during the course of trading on Tuesday, breaking above the $75 level. The $75 level is a large, round, psychologically significant figure, and the fact that we have broken through there rather stringently does suggest that crude oil is going to continue to go higher. The 50-Day EMA sits just above and could cause a certain amount of resistance, so keep that in mind as well.

If we can break above the 50-Day EMA, then it could send the market to the 200-Day EMA, which of course will define the trend for a lot of traders. Underneath, I believe that the $73 level continues to be significant support. We have bounced from a very significant support level, so I do think we are in the midst of a potential trend change.

Brent Crude Oil Technical Analysis

Brent markets have rallied rather significantly as well, testing the 50-Day EMA, and breaking above the $80 level. By doing so, it is a very positive sign, and it looks like we are going to continue to see upward trajectory more than anything else. If we can break above the top of the 50-Day EMA on a daily close, then we could go looking to the $83 level with the 200-Day EMA being a potential target.

Underneath, the market is likely to continue to see a lot of support, extending down to the $78 level. The $78 level has offered support recently, and therefore if we break down below there, the situation could get kind of ugly, but right now it looks like Brent is trying to do the same thing that the WTI grade of crude oil is going, recovering from a major low.

The next couple of months will be interesting, but I do think that with the central banks out there looking to loosen monetary policy, specifically the Federal Reserve, it’s likely that we will see people start to bet on an acceleration in the positive momentum for crude oil and other commodities as well. With this, I am cautiously optimistic at the moment but would not be surprised to see multiple pullbacks.

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