Crude Oil Price Forecast – Crude Oil Markets Continue to Consolidate

Crude Oil Prices Forecast Video for 30.08.23

WTI Crude Oil Technical Analysis

The WTI Crude Oil market has initially tried to rally during the day but gave back gains rather quickly. We are currently in the midst of a bullish pennant, and therefore I think if we can break above the highs of the last couple of candlesticks, then it is likely that we will at the very least, try to get to the top of the flagpole. That means just shy of the $85 level. This makes a certain amount of sense, due to the fact that the market has to worry about the OPEC lack of supply as the Saudi government has cut off 1 million barrels per day.

As long as that’s going to be the case, there is a bit of a floor in the market, and therefore I think you got a situation where the dips continue to be bought. Furthermore, we also have a 50-Day EMA trying to break above the 200-Day EMA, forming the so-called “golden cross.”

Brent Crude Oil Technical Analysis

Brent markets initially tried to rally during the day, but did give back some of the gains. Because of this, the market is likely to continue to see a lot of noisy behavior, with a 200-Day EMA underneath offering a certain amount of support. The $85 level above is a bit of a barrier that I think eventually we break above, and when we do it’s likely that the market will go looking to the $87.50 level. Clearing that level then opens up the possibility of a move to the $90 level.

Underneath, the 50-Day EMA will offer support, right along with the $80 level. All things being equal, I like the idea of buying short-term dips in this market as well, and for the same reason as I do with the WTI market, due to the fact that supply is tight and of course the Americans have emptied out the Strategic Petroleum Reserve and will have to replace all of that supply, adding a bit of upward pressure on the market. Furthermore, you can make an argument that there is also a bullish flag in this market, so that of course is a sign that buyers might come in and take advantage of momentum.

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