Crude Oil Price Forecast – Crude Oil Waits for Fed and Inventories

WTI Crude Oil Technical Analysis

The crude oil markets overall are a bit soft during the trading session on Wednesday as we wait for the Federal Reserve interest rate decision and the crude oil supply numbers in the United States. That being said, the light sweet crude market tends to look at this 50 day EMA through a prism of potential support and I do think that it could very well hold. But we need to break above the 200 day EMA to pick up a little bit of momentum to the upside.

I suspect this market will be choppy and sideways, but eventually we will get some type of more obvious move. If we were to break down from here, the $67 level would be an area that would be the floor in the market. I don’t think we will get there, but it is something to keep in the back of your mind. $78.50 above continues to be massive resistance.

Brent Crude Oil Technical Analysis

Brent looks very much the same as it has pulled back towards the 50 day EMA during early trading on Wednesday as well. But again, we’re waiting for inventory numbers and of course the Federal Reserve. The Brent market of course is a little bit more sensitive to the rest of the world than it is the United States.

So, I think you have a situation here where you have to look at this through the prism of one of these markets leading the other. We’ll just have to see which one it is. As a general rule, if you see one contract start taking off to the upside, the other will follow. The $75.50 level and the 50-day EMA both offer support here. I am looking for more of a buy on the dip opportunity in both of these markets.

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