Crude Oil Price Forecast – Crude Oil Markets Looking to Fill a Gap

Crude Oil Prices Forecast Video for 20.04.23

WTI Crude Oil (US) Technical Analysis

West Texas Intermediate Crude Oil fell a bit during the trading session on Wednesday, as it looks like we are thinking about dropping down to fill the gap. The 50-Day EMA sits right around the $77.30 level or so and is rising. That also sets just above the gap, so I think at this point it does make a certain amount of sense that we go looking to reach that area. The heavy candlestick from the trading session on Wednesday does suggest that perhaps we are getting ready to do so, because I think some people are starting to rethink the whole idea of OPEC cutting production.

After all, we have seen OPEC cut production by 1.6 million barrels per day, which of course has people worrying about supply, but at the same time you have to ask yourself whether or not OPEC would cut production in what looks to be a healthy market. In other words, they see demand shrinking. At the very least, technical traders will be more likely than not to try to fill that gap anyway.

Brent Crude Oil (UK) Technical Analysis

The Brent market has fallen during the trading session on Wednesday, and it now looks as if it is going to threaten to fill the gap underneath. Ultimately, I think this is a situation where you will probably continue to see a push toward the bottom of the gap, which is closer to the $80 level. The 50-Day EMA of course could offer a little bit of noise, but at the end of the day it’s just an indicator, and it’s not like it is religiously followed at all points.

Rallies at this point in time probably get sold into, especially as the 200-Day EMA has offered fairly significant resistance. Because of this, I think we are getting ready to see a move lower, and therefore I am a seller. I’m not necessarily looking to get overly exposed to the market, but I think for short-term trade it probably makes a certain amount of sense that we drop down to that $80 handle and try to see whether or not there are buyers.

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