Crude Oil Price Forecast – Crude Oil Markets Continue to Show Signs of Life

Christopher Lewis
Published: Feb 8, 2023, 15:16 GMT+00:00

Crude oil markets have rallied again during the trading session on Wednesday as we are approaching the crucial midpoint of the overall consolidation range.

Crude oil, FX Empire

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Crude Oil Prices Forecast Video for 09.02.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Wednesday, as we continue to bang around in a large consolidation area. The 50-Day EMA is an area that a lot of people will pay close attention to, and I think because of this we are about to see a few bumps. The market sees the $70 level underneath as major support, while the $82.50 level is a major resistance barrier. I do think at this point we are more likely than not going to see this market continue to bang around in that area, and as we are in the middle of that range, it’s probably not the best place to put on a trade.

Brent Crude Oil Technical Analysis

Brent has also shown itself to hang around the 50-Day EMA on Wednesday, as the market is right in the middle of the overall consolidation area. The $80 level underneath is an area that a lot of people have been paying attention to, and I think will continue to offer support. On the other hand, the 200-Day EMA is hanging around the $90 level, which is also the top of the consolidation area.

With this, I think the market continues to go sideways as we trying to figure out whether or not the global economy is going to demand more crude, or if it’s going to be a situation where there is less demand as central banks around the world continue to tighten monetary policy. All things being equal, I think we still have more confusion ahead, therefore more choppiness.

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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