Crude Oil Price Forecast – Crude Oil Markets Attempt a Recovery

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has been positive during the trading session on Wednesday, albeit from very low levels. We did break above the $80 level, so that’s the first psychological hurdle to overcome if you are bullish. Having said that, I think that this will remain a “fade the rally” type of market, and therefore I’m looking for signs of exhaustion to get short. After all, crude oil is going to suffer if there is going to be a significant lack of demand. Global economies weakening around the world is not an environment that’s typically strong for crude.

Brent Crude Oil Technical Analysis

Brent markets also look very suspicious, even though they had a nice session on Wednesday. It’s worth noting that we did recapture the $85 level, but it’s also very possible that the $90 level could cause a lot of resistance. I do believe at this point it’s likely that we will continue to see more of a “fade the rally” type of situation over here as well, as these heavier grades accrued or needed in transportation, which is something that may not be needed as much in the future if consumers are in fact going to start pulling back.

Having said that, this relief rally does make a certain amount of sense, especially considering just how much we have been selling off. I do believe that the $90 level causes some major issues though, so it is worth paying close attention to whether or not we can overcome it. If we cannot, then I’m going to start getting short again. If we do, then the next major barrier would be the 50-Day EMA.

Crude Oil Prices Forecast Video for 29.09.22

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