Crude Oil Price Forecast – Crude Oil Markets Continue to Bounce Back and Forth
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market has rallied just a bit during the trading session on Wednesday as the market is hanging around just below the $90 level. This is an area that obviously has a certain amount of psychology attached to it, and traders are starting to try to figure out whether or not there is going to be more demand or less going forward. One of the big fundamental changes over the last couple of days has been that it looks like there may very well be some hope for an Iranian atomic deal, meaning that Iran may be able to put oil back into the market.
Crude Oil Prices Forecast Video for 18.08.22
Brent Crude Oil Technical Analysis
Brent markets also look as if they are ready to drift lower and continue to be a “fade the rally” type of market. The $91 level has offered a little bit of support, and I think it probably extends down to the $90 level. The 200-Day EMA sits at the $97.36 level and is running flat. Because of this, the market is likely to continue seeing downward pressure on rallies, especially as the 50 Day EMA sits below the $102 level and is dropping. Quite frankly, we are getting relatively close to a “death cross” in this market, so it sets up for a potential longer-term bearish market.
I don’t read much into that indication, but it will almost certainly kick off algorithms in the markets. If we were to turn around and break out above the 50 Day EMA, the $104 level would probably be the target. Anything above there opens up a longer-term uptrend that could go much higher. I think you should pay attention to the US dollar with its negative correlation, and of course GDP numbers around the world.
For a look at all of today’s economic events, check out our economic calendar.