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Crude Oil Price Forecast – Crude Oil Markets Look Happy

By:
Christopher Lewis
Published: Mar 30, 2023, 14:43 GMT+00:00

Crude oil markets have had a slightly positive session during the day on Thursday, but at this point it looks as if the 50-Day EMA above could cause some issues.

Crude oil, FX Empire

In this article:

Crude Oil Prices Forecast Video for 31.03.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has been slightly positive during the trading session on Thursday, but still looks as if it has a bit of negativity attached to it. Because of this, I think you’ve got a situation where the market is more likely than not going to continue to struggle, therefore I think you need to pay close attention to any signs of exhaustion in this neighborhood. The 50-Day EMA itself is of course an indicator that a lot of people pay attention to, so it’s worth noting that a certain amount of technical noise will be found there. Furthermore, you have to think about the fundamentals as well.

As there are a lot of concerns around the world about global growth and global demand, it does make a certain amount of sense that oil will fall. After all, if we are going to head into a global recession, obviously you will have major issues when it comes to demand and therefore it’s likely that we drift towards the $70 level.

Brent Crude Oil Technical Analysis

Brent markets also rallied a bit during the trading session, but at this point in time we continue to see a lot of noise more than anything else, so I think you have to be very cautious of the fact that we are getting close to the 50-Day EMA. At this point, if we were to break down below the $75 level, then it’s likely that we would see a little bit of psychological support in that area, but breaking down below there makes a certain amount of sense as well, perhaps reaching to the $70 level after that. I think at this point, the $70 level represents a bit of a floor in the market, so anything below there would be obviously very negative.

As far as rallies are concerned, we would need to see some type of fundamental switch in the global economy itself to suggest that we are in fact going to see crude oil take off to the upside. As things stand right now, it’s very likely that the 50-Day EMA will be your short-term ceiling so I’m looking for signs of exhaustion to start fading, or negative momentum to start shorting.

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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