Crude Oil Price Forecast – Crude Oil Markets Pull Back From Moving Average

Crude Oil Prices Forecast Video for 21.06.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market has rallied to test the 50-Day EMA to show signs of bullish pressure, only to turn around and give up those gains. Ultimately, this market continues to see a lot of volatility because there are a lot of questions being asked of the markets these days.

The first one, of course, will be whether or not demand will pick up. Yes, we have seen a lot of production cuts, but at the same time, the economy is struggling quite drastically. All things being equal, this is a market that continues to see a lot of noise not only at the 50-Day EMA, and then again at the $75 level. That being said, I do think it’s probably only a matter of time before we see selling pressure even if we do break out to the upside.

Underneath, the $70 level offers a certain amount of support, opening up a move down to the $67.50 level. Things could get rather ugly if we were to break down below there.

Brent Crude Oil (UK) Technical Analysis

Brent initially tried to rally as well, but just like the WTI grade, found the 50-Day EMA to be a little too much to overcome. Because of this, it looks like we are still in a slight downtrend, but overall, probably more or less in some consolidation. If the market were to fall from here, then I think the $75 level is an area of potential short-term support, but if we break down below there, then it’s possible that we go down to the ¥71.50 level, followed very quickly by the $70 level.

When you look at crude oil, there is a “push/pull” type of market, with a serious concern of major lack of demand, and therefore I think we’ve got a situation where there’s a lot of negative pressure. On the other hand, the production cuts as of late from OPEC of course does put a little bit of a floor in the market. Because of this, I think we more or less see crude oil as a “fade the rally” type of situation, but also means that we may stay somewhat in consolidation for the meantime.

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