Crude Oil Price Forecast – Crude Oil Continues to Pull Back

Christopher Lewis
Published: Sep 20, 2023, 14:01 GMT+00:00

Crude oil markets pulled back during the trading session on Wednesday, as the overstretched condition continues to come into play.

Crude oil rig, FX Empire

In this article:

Crude Oil Prices Forecast Video for 21.09.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market fell during the trading session on Wednesday, as gravity has finally come back into the picture. Alternatively, if we were to break down below the bottom of the candlestick for the session on Wednesday, then we could plunge toward the $87.50 level. The market continues to see a lot of noise overall, and therefore I think you need to take a look at this market through the prism of volatility, and therefore a pullback does make quite a bit of sense. At this point, you can see that the market has shot straight up in the air, and therefore I think we could drop as low as the $85 level where I would see a lot of value.

Keep in mind that the market continues to pay attention to the supply/demand equation as Saudi Arabia and Russia both have been cutting back production. Furthermore, inflation is raging through the world right now, and that of course has its influence on crude oil as well.

Brent Crude Oil Technical Analysis

Brent markets have pulled back just a bit during the trading session on Wednesday, as the $95 level has offered quite a bit of resistance, and therefore I think this pullback at this point in time could see support near the $92.50 level, and then possibly the $90 level where we had seen consolidation previously. All things being equal, this is a market that should continue to go much higher at this rate, but eventually gravity does have its effect.

You should keep in mind that the market had gotten way ahead of itself, so a deep correction would make quite a bit of sense. Having said that, shorting the market is all but impossible at this point. The market formed a shooting star during the day on Tuesday, showing signs of exhaustion and of course hesitation after a parabolic move. Parabolic moves tend to cause vicious pullbacks, and we may be getting ready to see that. However, I will be waiting to catch it once we see a bit of a stability move come back into the marketplace. Chasing the market all the way up to this point on the chart could be very dangerous.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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