Crude Oil Price Forecast – Crude Oil Reaches the 50-Day EMA

Crude Oil Prices Forecast Video for 03.04.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Friday to reach the 50-Day EMA. Furthermore, the $75 level is right there as well, and of course offers a little bit of psychological resistance. With that being said, I think this is a situation where the market is eventually going to run out of momentum and start to drift lower. After all, you have to keep in mind that there are a lot of fundamental reasons why this may not work out so well for oil.

Keep in mind that there are a lot of concerns about global growth, and therefore it will weigh upon the idea of crude oil suddenly taking off. Yes, it’s been a nice little bounce but when you look at the longer term charts, we are nowhere near changing the trend. On signs of exhaustion, I will be a seller of crude oil. In fact, it’s not until we break above the 200-Day EMA, which is near the $82 level before I would get bullish.

Brent Crude Oil (UK) Technical Analysis

Brent markets also rallied during the trading session, as we are getting close to the 50-Day EMA. The 50-Day EMA sits just above the $80 level, and the market has reached the $79 level. Signs of exhaustion will be selling opportunities, as Brent will also suffer at the hands of a slowing down economy worldwide, as demand in Asia seems to be slowing. Yes, the consumer economic numbers in China seem to be fairly strong, but industrial numbers have not picked up.

Because of this, it’s likely that any signs of weakness will get sold into, and Brent will more likely than not reach towards the $75 level. If we break down below the $75 level, then it’s possible that we go down to the $70 level. Regardless, I don’t have any interest in trying to buy this market, because there is so much economic weakness out there that even though we had this nice little bounce, it is more likely than not going to be a situation where we are fading hesitation.

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