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Crude Oil Price Forecast – Crude Oil Markets Continue Recovery

By:
Christopher Lewis
Published: Nov 20, 2023, 15:35 GMT+00:00

The crude oil markets have rallied a bit during the trading session on Monday, to continue the recovery that we had seen on Friday.

Crude oil rig, FX Empire

In this article:

Crude Oil Prices Forecast Video for 21.11.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has rallied again on Monday to continue the recovery that started on Friday. That being said, the market does have a major barrier just above near the $80 level, which of course is a large, round, psychologically significant figure, which is also backed up by the 200-Day EMA, and if we can break above there, then the market could go looking to the $85 level. At this point, all things suggest that we are going to continue to see a lot of volatility, which does make quite a bit of sense considering that there are so many different questions at the same time.

Underneath, the $75 level could offer a significant amount of support, and therefore it’s likely that we could see a situation where value hunters can come back somewhere above there as the area has been crucial. It’s also worth noting that a lot of what we have seen has been concerns that the oil markets are dealing with, not the least of which would be the potential of a major worldwide recession. On the other hand, we also have to pay close attention to OPEC and what it’s going to do with production.

Brent Crude Oil Technical Analysis

Brent markets also have rallied rather significantly during the trading session, using the $80 level as support. All things being equal, it looks like the market is going to continue to see a lot of volatility, based on not only a potential recession issue, but also the possibility that the Middle East war could continue to cause some issues. While we have not seen an expansion of the war, that was one of the big fears initially.

The $80 level should be significant support, and if we were to break down below there, it could change things and drop the market down to the $77.50 level. Ultimately, the 200-Day EMA sits just below the $85 level, and it could be a short-term target but I also recognize that we are a bit overextended at the moment, and therefore it’s likely that we see a little bit of a pullback, but that could be a nice buying opportunity if we continue to see a lot of value hunting in this general vicinity.

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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