Crude Oil Price Forecast – Crude Continues to Look For Momentum For a Breakout

Crude Oil Prices Forecast Video for 08-02-2024

WTI Crude Oil Technical Analysis

The crude oil market has rallied slightly during the course of the trading session on Wednesday, as we continue to reach towards the 50 day EMA. That being said, the 50 day EMA is a reasonably important technical indicator that some people will be paying attention to. If we can break above there, then it’s likely we go looking to the 200 day EMA after that.

Underneath, I see the $71 level offering support over the last couple of days and I do think that we are gradually trying to grind our way higher. The biggest problem with oil right now is that you can make an argument in both directions as seen on this chart. OPEC is starting to lose its sense of humor when it comes to the pricing of oil. But at the same time, you can make the argument that perhaps central banks drive up energy demand. If that’s going to be the case, then obviously crude oil will be the major beneficiary. We’re also close to a major bottom on longer term charts, so I would pay close attention to that as well.

With $68 being an area that’s been important for some time we have a clear support underneath, while to the upside I would like to point out that the 200 day EMA sits right around the $78 level. For this reason, I think it will be difficult to surpass that area, but if we were to do so, then obviously that would be very bullish and I think at that point in time you would have to assume the crude oil is going to continue to go much higher.

Nonetheless, I think at this point you have to assume that the market is going to be choppy more than anything else therefore, you have to be very cognizant of the fact that you need to keep your position size reasonable and you cannot get overexposed in one direction or the other. That being said, I do think we’re closer to the bottom than the top at this point.

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