Crude Oil Price Forecast – Crude Oil Markets Threatening Resistance

Crude Oil Prices Forecast Video for 07.08.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Friday as it looks like we are going to try to do everything we can to break above the $82.50 level, an area that has been significant resistance. If we can break above there, then I think it opens up the possibility of a move to the $85 level. Ultimately, short-term pullbacks will more likely than not be buying opportunities, with the $80 level offering a significant amount of support in general. The 200-Day EMA sits below there, and probably offers a certain amount of buying opportunity as well.

If we do break out to the upside, the $85 level would be the first target, followed by the $90 level over the longer term. That being said, what we see now is Saudi Arabia willing to extend its voluntary 1 million barrels per day production cut to tighten the crude oil supply. All things being equal, I think this is a situation where we see a lot of noise, but I still believe that there are buyers out there willing to pick up dips and therefore it remains a “buy on the dips” market.

Brent Crude Oil Technical Analysis

Brent markets also rallied just a bit during the trading session on Friday, and it looks like we are trying to break toward the $87.50 level. The $87.50 level is an area that has previously been resistance, and therefore I think it’s probably only a matter of time before it gets tested again. If we can break above there, then it’s likely that we go much higher, perhaps the $90 level. The $90 level is an area that will obviously cause a lot of noise due to the fact that it is a large, round, psychologically significant figure, and of course an area where we would probably see a lot of options barriers. All things being equal, oil looks as if it wants to go higher and the fact that we have the 200-Day EMA offering support just below suggests that there will be buyers looking to get involved, and we have already seen a reaction to it.

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