Crude Oil Prices Forecast Video for 24.08.23
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market has fallen rather significantly during the trading session, losing 2% early. That being said, a lot of this comes down to the lack of strength in the European and British economies, as measured by PMI numbers. Furthermore, we may have been a little overextended, so I think at this point in time a bit of profit-taking makes sense.
We are currently hanging around the 200-Day EMA, as well as the 50-Day EMA. In other words, it does make a certain amount of sense that we would see a little bit of technical support. That being said, it also makes a certain amount of sense that it’s just the moving average, and it’s not necessarily something that you can put a lot of faith in, it’s just yet another reason to think that buyers might come back in. If we turn around and break above the $80 level, that would obviously be a very strong sign that we are probably going to go looking toward the $85 level.
Brent Crude Oil Technical Analysis
Brent markets have also fallen, slicing through the 200-Day EMA by the time New York traders came online. That being said, this is a market that I think continues to see a lot of noisy behavior, perhaps trying to get down to the 50-Day EMA. The 50-Day EMA being broken below could open up and move down to the $80 level. The $80 level of course is a large, round, psychologically significant figure, and therefore we need to pay close attention to it.
The candlestick for the session on Wednesday suggests that we are going to continue to see a lot of noisy behavior, but if PMI numbers in the United States come out stronger than anticipated, that could turn things right back around. All things being equal, this is a situation where I think you have to look at this through the prism of a pullback, but not necessarily a massive one. We will have to wait and see, but I think that you are probably better served waiting until the end of the week to make a tactical decision as I see nothing but noise at the moment.
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