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Crude Oil Price Forecast – Crude Oil Markets Continue to Consolidate

By:
Christopher Lewis
Published: May 29, 2023, 14:42 UTC

Crude oil markets have consolidated over the last several days, it is likely that the market is trying to figure out where to go next.

Crude oil, FX Empire

In this article:

Crude Oil Prices Forecast Video for 30.05.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has been somewhat negative during the trading session on Monday, but it should be kept in the back of your mind that it was Memorial Day, and therefore it was limited to electronic trading more than anything else we were dealing with. With this, it looks like we are continuing to struggle with the 50-Day EMA, and if we can break above that then the WTI grade could go to the $75 level, perhaps even as high as $79 where the 200-Day EMA is racing toward.

If the market falls from here, keep in mind that the $70 level underneath will probably be supported, and a lot of people will pay close attention to it. Breaking down below that level then opens up the possibility of a move down to the $67.50 level, maybe even as low as the $65 level.

Brent Crude Oil Technical Analysis

Brent markets initially tried to rally during the trading session on Monday as well but then turned around to show signs of negativity as the 50-Day EMA above continues to cause some issues. If we were to break above there, then we would have to test the $80 level, which of course is a large, round, psychologically significant figure. On the other hand, if we were to break down below the $75 level, then it’s likely that we could go down to the $72.50 level. After that, then we have $70 that will more likely than not attract a lot of attention and support as well, as we have seen multiple times.

I do expect a lot of noisy behavior, therefore it’s likely that we will see a lot of choppiness, but given enough time I do think that we have to make a bigger decision. Expect noise and volatility more than anything else, but I do think if we manage to break above the 50-Day EMA we could see a little bit of momentum into this market. Longer-term, I suspect that we are in the midst of a summer range that is very typical for crude oil markets.

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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