Crude Oil Price Forecast – Crude Oil Markets Continue to Grind Slightly Higher

Crude Oil Prices Forecast Video for 20.12.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market initially fell a bit during the trading session on Tuesday, but found buyers yet again as we continue to see a lot of noisy but bullish behavior and perhaps even volatility because we are seeing a lot of things happening at the same time.

The first thing you need to think about is that it’s likely that there are short covering trades going on, as some traders will have made quite a bit of money on the way down. Furthermore, a lack of liquidity could come into the picture, as we head into the holidays and it’s likely that the markets will continue to be very noisy. Just above, the $75 level of course will offer a certain amount of resistance due to the psychology involved, and of course the 50-Day EMA. Underneath, there is still plenty of support so I think it’s probably only a matter of time before the buyers would pick up “cheap oil” as it looks like we are trying to consolidate a bit.

Brent Crude Oil Technical Analysis

Brent markets also initially pulled back just a bit during the trading session, but suffer from the same lack of liquidity and short covering issues that the WTI market does. The $80 level above is a large, round, psychologically significant figure, and an area that would attract a certain amount of attention as the 50-Day EMA races to the downside. In general, I think this market has plenty of support underneath, and it is worth noting that perhaps oil markets were oversold to begin with, and now it’s possible that we are going to try to bounce from a longer-term support level that traders have been playing off of for quite some time. All things being equal, this is a market that will continue to be very noisy, but all things being equal, this is a situation where I do think that we could start to see a bit of a recovery, but I also would anticipate the occasional selloff. Caution will be the better part of valor.

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