Crude Oil Price Forecast – Crude Oil Markets Rally on Friday

Crude Oil Prices Forecast Video for 16.10.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market rallied rather significantly during the Friday session, testing the top of the recent consolidation area that we have seen. It may have something to do with concerns about violence in the Middle East, it may also have something to do with the fact that the actual supply is rather scarce. Either way, this is a market that I think you continue to see a lot of noisy behavior and therefore you will probably need to be very cautious about your position sizing, but I would pay special attention to the $87 region, because if we can clear all of that, then I think the market could really start to take off to the upside.

It’s worth noticing that the market has seen a lot of support between the 200-Day EMA and the 50-Day EMA, so it suggests that we do have a lot of support in this area. Quite often, the trend is confirmed in this area, so it will be interesting to see if we can hang on to this. That being said, if we were to break down below the 200-Day EMA, then that would obviously be a very negative sign.

Brent Crude Oil (UK) Technical Analysis

Brent markets also have had a very bullish day during the trading session on Friday, as we continue to see a lot of back-and-forth behavior. We’re hanging around the 50-Day EMA, which of course is a widely followed technical indicator, so I would anticipate that a lot of choppiness is ahead. However, if we can break above the $87 level, then it’s likely that the Brent market will go much higher, perhaps reaching the $90 level, perhaps even the $95 level.

Ultimately, this is a market that I think continues to see a lot of noise and therefore you need to be very cautious with your position size, but clearly you cannot be a seller of crude oil at the moment as we continue to see plenty of wherewithal for the buyers. Furthermore, there’s so much in the way of geopolitical concerns in the Middle East that is difficult to imagine oil has anything other than massive volatility.

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