Crude Oil Price Forecast – Crude Oil Markets Stage Nice Recovery During Friday Session

Crude Oil Prices Forecast Video for 06.03.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market initially fell during the trading session on Friday to reach down toward the $75 level. However, we have turned right back around to show signs of life and form a massive hammer. It’s worth noting that we have broken back above the 50-Day EMA, but at the end of the day, the reality is that oil remains very much in a massive consolidation rectangle. We are basically in the middle of that rectangle, so it’s difficult to put a lot of money in the market. If you are short-term back-and-forth trader, then you might have a potential set up at times on shorter time frames, but if you are a swing trader, you’re going to struggle to find your footing in the middle of the larger consolidation.

The $72.50 level underneath should be support, as it is an area that we have seen buyers at multiple times. On the other hand, the $82.50 level is significant resistance, where we have seen quite a bit of selling pressure multiple times in the past. Furthermore, you should keep in mind that the 200-Day EMA sits just above that consolidation.

Brent Crude Oil Technical Analysis

Brent also initially fell during the trading session on Friday, only to turn around and show signs of strength. Ultimately, crude oil continues to be very resilient, despite the fact that we have not been able to go anywhere. After all, you can make an argument that a lot of global uncertainty should weigh upon the market, but it is starting to look more and more like it is offering a bit of accumulation.

The 200-Day EMA sits at the $89.20 level, and you can probably think of the $90 level as the top of the overall resistance barrier. If we can break above there, it’s likely that the market could go looking to the $97.50 level. On the other hand, if we turn around and fall, the $77.50 level would offer support, as it has proven itself a couple of times in the past. All things being equal, we are in the middle of the range in this market as well, so I think it’s still a bit difficult to handle for a bigger trade.

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