Crude Oil Price Forecast – Crude Oil Markets Test the 200 Day EMA

Crude Oil Prices Forecast Video for 13.04.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market rallied a bit during the trading session on Wednesday, but it looks like we continue to see a lot of noise just above the 200-Day EMA. Ultimately, this is a market that has recently gapped higher, but has not turned around to fill that gap. In other words, there is probably a lot of noise out there that could come into the picture, but right now it looks like the market is focusing on the fact that CPI numbers were lower than anticipated in the United States, making people believe that the Federal Reserve was going to cut interest rates sooner rather than later, thereby pushing everything higher.

Ultimately, this is a market that will have to eventually fill that gap, but it doesn’t look like we are ready to do so quite yet. With that being the case, I think you’ve got a situation where if you are short-term trader, you are looking to the upside, perhaps reaching $85. On the other hand, if we get some type of exhaustion candle, then we could fall back toward the 50-Day EMA, filling the gap.

Brent Crude Oil Technical Analysis

Brent is also rallying, although is still below the 200-Day EMA. If the market is to break above there, then it could open up a rash of buying, perhaps an attempt to break above the $90 level. Anything above there opens up the possibility of a move to the $95 level. Again, just as the WTI grade, Brent has a lot of noise around it, and of course we have to worry about the gap underneath. That gap will eventually be filled, at least if historical norms are considered.

That being said, the market is likely to see a lot of volatility, and therefore you need to be very cautious. The interesting thing is that crude oil is rallying in the light of lower inflation, suggesting that perhaps we are going to continue to see the economy slow down enough that things can get turned around for a central bank perspective. I don’t see that happening anytime soon, so with that being the case, so therefore signs of exhaustion will be jumped on. If you are short-term incline, then a quick momentum trade may be presenting itself.

For a look at all of today’s economic events, check out our economic calendar.