Crude Oil Price Forecast – Crude Oil Markets Have Volatile Session
Crude Oil Prices Forecast Video for 31.05.23
WTI Crude Oil (US) Technical Analysis
The West Texas Intermediate Crude Oil market has formed an explosive candle, initially rallying during the day on Tuesday, only to turn around and show quite a bit of noisy behavior. The $70 level underneath is of course a large, round, psychologically significant figure that a lot of people will be paying close attention to. With this, I think it’s probably only a matter of time before we see some type of support, but if we were to break down below the $70 level, that could open up a move down to the $65 level. The $65 level of course is a large, round, psychologically significant figure that a lot of people will be paying close attention to.
To the upside, we have the 50-Day EMA that sits just above the $74 level, which of course is dropping from here. Ultimately, this is a situation where the market will continue to look at that as a short-term ceiling, but if we were to break above there, then I don’t see any reason why the market won’t try to get to the 200-Day EMA.
Brent Crude Oil (UK) Technical Analysis
The Brent market has gotten crushed during the trading session on Tuesday to show signs of hesitation. The 50-Day EMA above is a significant barrier, that I think a lot of traders will struggle to get above. If we do break above the 50-Day EMA, then we could go looking to the $80 level. Breaking above the $80 level allows the possibility of a move to the 200-Day EMA, which sits just below the $85 level.
Breaking down below the $74 level allows Brent to go looking to the $70 level. The $70 level is an area that has offered a significant amount of support, as it has been important multiple times and of course is a large, round, psychologically significant figure. Whether or not we break down below there is completely open question, but if we did, it could open up a move much lower. That being said, the market has been beaten down so much that I think we are essentially in the summer range that is quite common for this market.
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