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Crude Oil Price Forecast – Crude Oil Continues to Undulate

By:
Christopher Lewis
Published: May 19, 2023, 14:46 UTC

Crude oil markets have done very little during the trading session on Friday as we continue to hang around the same general area.

Crude oil, FX Empire

In this article:

Crude Oil Prices Forecast Video for 22.05.23

WTI Crude Oil (EE. UU.) Technical Analysis

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session initially on Friday, but did start to give up gain rather quickly. By doing so, the market is likely to continue to see a lot of noise, and with that being the case the market taking out the highs of the last couple weeks has participants taking on the 50-Day EMA. The 50-Day EMA is racing down to meet the market, so it’ll be interesting to see if we can take it out and go higher.

That being said, underneath we have the $70 level offering a bit of support, and the fact that nobody is really sure what’s going on with the global economy will continue to make this a noisy market. In this environment, I think you probably continue to see more compression, but eventually, we will get some type of impulsive candlestick that we can follow. Short-term back-and-forth trading is to be expected in this market.

Brent Crude Oil (UK) Technical Analysis

Brent markets also tried to rally but continue to find a lot of resistance just above, as we are forming a bit of an ascending triangle. It is possible that we break out to the upside but I think that the upside is somewhat limited due to the fact that we have so much in the way of noise. The 50-Day EMA sits near the $79 level and is dropping, and I think it would probably offer a bit of noise. If we can break above there, then it’s possible that the market could go looking to the $80 level.

On the downside, the $73 level offers a certain amount of support, perhaps opening up a move down to the $70 level. Ultimately, this is a market that I think continues to see a lot of noisy behavior and probably will see a lot of choppiness as traders try to weigh the importance of supply constrained, and of course the fact that the global economy is falling apart. With that being the case, the market is likely to be noisy and therefore you have to be cautious with your position sizing. We may be trying to establish some type of “summer range”, as crude oil typically does.

For a look at all of today’s economic events, check out our economic calendar.

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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