Crude Oil Price Forecast – Crude Oil Markets Have Explosive Friday

Crude Oil Prices Forecast Video for 05.06.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market has rallied significantly during the trading session on Friday, as we have approached the $72 level, and perhaps even more importantly, the middle of the triangle that had recently been formed. However, we have sliced through the triangle in both directions, so it will be interesting to see how the market reacts to this general vicinity.

The 50-Day EMA above could offer a little bit of resistance, so be aware that it could come into the picture. On signs of exhaustion I will be more than willing to start selling, but I would not be a buyer at this point, at least not to chase a move like we have seen over the last 48 hours. I think there are still a lot of concerns when it comes to global demand, but it’s also worth noting that supply is tight. I think we are going to continue to see choppy volatility through the rest of summer.

Brent Crude Oil (UK) Technical Analysis

The Brent market actually is touching the bottom of the triangle that it broke down from previously, and unlike the WTI grade, it has a much cleaner technical setup. While it does look very bullish over the last couple of days, signs of exhaustion between here and the 50-Day EMA might kick off more selling, opening up the possibility of Brent dropping well below the $75 level again. If we do break down below there, then I think it’s likely that we go down to the $72.50 level, and then eventually the $70 level.

On the other hand, if we do break above the 50-Day EMA, then it’s possible that we could go looking to the $80 level. The $80 level is a large, round, psychologically significant figure, and of course an area where we would see a lot of options barriers erected as well. If we can break above there, then I think you could see a bit of a “FOMO trade” to the upside, perhaps allowing the market to go looking to the 200-Day EMA, which has just dipped below the crucial $85 level. Either way, I would expect a lot of volatility.

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