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Crude Oil Price Forecast – Crude Oil Markets Continue to Look for a Bottom

By:
Christopher Lewis
Published: Mar 24, 2023, 15:51 GMT+00:00

The crude oil markets have fallen a bit during the trading session on Friday but have also found a bit of support to bounce back up.

Crude oil, FX Empire

In this article:

Crude Oil Prices Forecast Video for 27.03.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market fell during the early hours on Friday, to break down below the $68 level. However, later in the day we have seen a little bit of recovery, as the market continues to try to form some type of basing pattern. That doesn’t necessarily mean that crude oil is suddenly going to take off to the upside for a longer-term bullish run, just that perhaps it is still a little bit oversold.

That being said, you could also make an argument that perhaps we are trying to find some type of bearish flag to print, but overall, I think we’ve got a situation where the market could go looking to higher prices, perhaps the $72.50 level, an area that is significantly supportive in the past, so therefore a certain amount of “market memory” could be at play in that area.

Brent Crude Oil (UK) Technical Analysis

Brent has fallen a bit during the trading session on Friday as well, and therefore it looks like we are trying to find quite a bit of turning around. That being said, the $77.50 level above was previous support from the previous consolidation area and should continue to offer a bit of resistance as well. That being said, you can also make a bit of an argument for a bearish flag trying to form, so that is something to play attention to as well.

If we were to break down below the lows of the Friday session, then it’s very likely that we could go down to the $70 level, which of course is a large, round, psychologically important figure. The $70 level has been important multiple times in the past, so it would make a certain amount of sense that we would continue to see a bit of a fight in that area, not only due to previous positions being put on, but the fact that options barriers would almost certainly be there.

If we do turn around and break above the $77.50 level, we could go looking to the 50-Day EMA which is closer to the $81.25 level. It’s worth noting that the 50-Day EMA is drifting lower, so it could offer a little bit of a short-term barrier. Remember, crude oil needs a healthy economic outlook to flourish in pricing.

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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