Crude Oil Price Forecast – Crude Oil Markets Attempt to Recover From Extreme Lows

Crude Oil Prices Forecast Video for 23.03.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has been slightly positive during the trading session on Wednesday, as we are waiting for the FOMC meeting. Keep in mind that the FOMC meeting and whether or not the market sees the result as hawkish or dovish will have a major influence on risk appetite, which of course crude oil is a major measure of.

Currently, the WTI Crude Oil market is trading right around the $70 level, but most of what we are seeing here could be filed under the thought of being a “bear market rally.” The 50-Day EMA is all the way up to the $75.55 region, and therefore we may have more room to run to the upside. That being said, it is more likely than not that rallies that show signs of exhaustion will end up being nice selling opportunities. I will be paying special attention near the $72.50 level, which is an area that was previous support.

Brent Crude Oil Technical Analysis

Brent markets have also rallied during the trading session on Wednesday, as we also see an oversold condition in this market. That being said, the $77.50 level is more likely than not going to offer a little bit of resistance in the form of “market memory.” Because of this, any signs of exhaustion in that area will more likely than not attract a lot of shorting, as the trend is most certainly negative, and that probably continues to be the case as there are a lot of concerns around the world that we will see economic sluggishness. If that is the case, then obviously it will be difficult to get overly bullish on energy as it is the lifeblood of the economy.

At this point, it’s very likely that the market is just trying to recover from an oversold condition, and therefore that’s all I would read into this. A little bit of patience could go a long way in this market, as we should have nice shorting opportunities above. The alternate scenario of course is to simply slide lower and break through the $70 level, but that doesn’t look as likely at this point.

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