Crude Oil Price Forecast – Will Crude Oil Finally Break Out?

Crude Oil Prices Forecast Video for 02.08.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has pulled back slightly during the trading session on Tuesday, as we may finally be running out of momentum. The market has gone straight up in the air of the last couple of weeks, and therefore it’s not a huge surprise to see that we would hesitate slightly. That being said, the market is also very likely to see a lot of noisy behavior if we do pull back, especially near the $80 level. If we were to break down below there, then you could have the market looking toward the 200-Day EMA, which is around the $77.50 level.

On the upside, if we do continue to rally, we need to get through the $84 level in order to reach the $85 level. The $85 level has a certain amount of psychology attached to it, but if we get to that area, I really don’t see what keeps us from going all the way to the $90 level.

Brent Crude Oil Technical Analysis

Brent followed WTI to the upside over the last couple weeks but seems to be fumbling right around the $85 level. The $85 level of course is a large, round, psychologically significant figure, and we need to get above the $87.50 level in order to continue to go higher. If we break above there, then the $90 level gets targeted. Anything above there opens up a move to the $95 level.

A pullback at this point could see a certain amount of support down at the 200-Day EMA, and therefore the $82.50 region. I do think that both of these markets are a little overextended, but I do also believe that there is a lot of support for them. After all, OPEC continues production cuts, finally getting the market to pay attention. Yes, there is a recession coming globally, but there’s also a lack of supply, which seems to have come to the forefront of traders’ minds. Buying on the dips probably continues to work out over the longer term, as we have seen so much momentum enter this market to the upside. We might be a little extended, but a short-term pullback can work that out.

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