Crude Oil Price Forecast – Crude Oil Continues to See Volatility

Crude Oil Prices Forecast Video for 08.11.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market initially fell hard during the trading session on Tuesday, but has shown some signs of life near the $79 level. That being said, a lot of traders are betting on recession coming finally, and that may be part of what’s happening here. Furthermore, the tension in the Middle East seems to be somewhat contained, so that has a lot to do with what oil was doing as well. Nonetheless, I do think we have a situation where we are getting oversold and we will continue to see a bit of a struggle for a deep selloff. If we were to break down below the crucial $77 level, all bets are off, but until then we are in the midst of forming some type of head and shoulders that hasn’t quite broken down yet. We are at a massive inflection point, and the buyers need to step up soon, or things could get out of hand. A break above the $82.50 level would have me looking to get long of this market again.

Brent Crude Oil (UK) Technical Analysis

The Brent markets also have fallen during the day, and now are testing major support. We are at the very low of the previous consolidation area, so it’ll be interesting to see how this plays out. If we turn around and take out the 200-Day EMA above, then we could send the market much higher. Until then, I am a bit hesitant to be a buyer of this market. I think Brent also is reacting to the fact that the Middle Eastern war has not expanded, and that of course is a major factor when it comes to crude oil.

At the end of the day, the one that we need to watch closely is the fact that Europe is heading into a recession, the United States very well could early next year, and Chinese numbers have been dismal as of late. We are currently in an area that needs to cause some type of bounce, or oil could find itself falling hard. At this point, it’s probably prudent to stay on the sidelines and wait for a little bit of clarity.

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