Crude Oil Price Forecast – Crude Oil Markets Looking for Support

Crude Oil Prices Forecast Video for 16.05.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market bounced slightly during the trading session on Monday, showing signs of life near the $70 level. With this being the case, the market is likely to continue seeing a little bit of hesitation here because, quite frankly, it has been oversold so drastically. However, if the market were to break down below the bottom of the candlestick for the session on Monday, then the market is likely to go flushing down to the $65 level. The $65 level underneath is a significant support level, and therefore if we were to break down below there, then the market could fall apart. That being said, this is very unlikely to happen, at least in the short term.

On the upside, if we break above the top of the candlestick, then it’s possible that we could get looking to the $75 level, which is closer to the 50-Day EMA and is dropping. If it were to hold as a barrier, then it might be a nice selling opportunity.

Brent Crude Oil (UK) Technical Analysis

Brent markets have initially pulled back as well, but then turned around to show signs of life. By doing so, the market looks as if it is staying right around the $75 level, but also has to keep an eye on the $70 level underneath that has been so significant as far as support is concerned. Breaking down below that level opens up a massive amount of selling pressure, and therefore could send the market down to the $65 level.

On the other hand, if the market were to break above the $77.50 level, then it is possible that the market could try to reach a 50-Day EMA, possibly even the $80 level. In general, I think this is a market that is going to continue to go back and forth with risk appetite and the overall “feeling of the day.” Keep in mind that there is a global recession more likely than not coming, and that of course will continue to work against energy in all forms as industry will be asking for less all that.

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