Crude Oil Price Forecast – Crude Oil Markets Continue to See Downward Pressure

Christopher Lewis
Published: Feb 3, 2023, 17:12 UTC

The crude oil markets have initially tried to rally during the trading session on Friday but have turned around quite drastically the show signs of exhaustion.

Crude oil, FX Empire

In this article:

Crude Oil Prices Forecast Video for 06.02.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market had initially tried to rally during the trading session on Friday but touch the top of the previous triangle and then pulled back to show signs of negativity. Furthermore, the 50-Day EMA sits just above the top of the candlestick, so it does suggest perhaps there’s a little bit of technical resistance as well. However, you should also keep in mind that underneath, we have a nice uptrend line from that triangle and that’s basically where we are sitting at right now. If we break down below the suction line, then it’s likely that the crude oil market goes looking down to the $72.50 level. Alternatively, we can take out the 50-Day EMA above, and the market could go looking to the $82.50 level.

Brent Crude Oil Technical Analysis

Brent markets initially tried to rally during the course of the trading session as well but found the 50-Day EMA and the top of the previous triangle to be a bit too much to deal with. By doing so, we ended up forming a bit of an inverted hammer, which of course will attract a lot of attention. In this scenario, I think you got a situation where we could go looking to the $80 level rather quickly, and breaking down below that level opens up the possibility of $77.50 next. All things being equal, this is a market that is going to continue to be very choppy, but I believe it’s probably only a matter of time before we have to make a bigger move. There are a lot of moving pieces out there, so I would anticipate that we would see a lot of noise.

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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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