Crude Oil Price Forecast – Crude Oil Markets Reached the Middle of Consolidation

Crude Oil Prices Forecast Video for 01.03.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Tuesday, reaching toward the 50-Day EMA, but giving back some of the gains. Ultimately, this is a market that has been in a range for quite some time, with the $72.50 level underneath offering support, while the $82.50 level above has been resistance. As we are in the middle of it, there’s not much to do, unless of course you are looking for short-term scalps.

The 50-Day EMA is relatively flat, and a lot of people will be looking at that as a potential target to take profit from the bottom. Nonetheless, I think this is a market that continues to consolidate as we try to figure out whether or not industrial demand will pick up, or if the global economy is going to slow down and drive the price of oil much lower.

Brent Crude Oil Technical Analysis

Brent markets have also rallied during the trading session on Tuesday, as we are looking at the 50-Day EMA as a potential resistance barrier. The market breaking above there could open up a move to the $90 level, which of course is backed up by the 200-Day EMA as well. Because of this, I think it’s probably only a matter time before the sellers would come back in if we do reach that level unless of course there is some type of major shift in attitude.

Underneath, the $77.50 level is a significant support level. As long as we stay above there, I think we stay in this general vicinity, and we have to figure out where we want to go longer term. In the meantime, you are probably looking at the likelihood of a range bound market more than anything else, and therefore I think we have to look at this through short-term choppy trading. If we were to break out of this box, then we could go about $10 higher or lower, but until then you will have to be very cautious about your positioning. With that, I think this is a situation that continues to be very noisy, but if you can trade short-term charts and watch them all day, you may have a potential setup at this point in time.

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