Crude Oil Price Forecast – Crude Oil Markets Plow Higher
Crude Oil Prices Forecast Video for 25.05.23
WTI Crude Oil (US) Technical Analysis
The West Texas Intermediate Crude Oil market has rallied during the trading session on Wednesday, as we are now approaching the 50-Day EMA. This is a market that has broken out of a triangle, and it does suggest that we are going to go higher. The $75 level would be the next obvious target, as the oil market does like the idea of going from one round figure to another. After that, we could see the market go looking toward the 200-Day EMA, which sits just below the $80 level.
Underneath, the $70 level should be important and will more likely than not offer a reasonable amount of support. Breaking below that level then opens up the possibility of a move down to the $65 level. In general, this is a market that continues to see a lot of noisy behavior and choppy, erratic movements. Because of this, you will have to be cautious with your position sizing, but in the short term, we probably go higher.
Brent Crude Oil (UK) Technical Analysis
Brent rallied significantly during the trading session on Wednesday as well, as we broke above the $70 level. By doing so, the market could open up the possibility of attacking the 50-Day EMA. After that, we have a potential move waiting to happen in the market to look toward the $85 level. On the other hand, if the market were to turn right back around, the $75 level would be an area that attracts a certain amount of attention, and then perhaps down to the $70 level.
If we break above the 50-Day EMA and the $80 level, then I would anticipate more “FOMO trading” entering the market, as people would be chasing the return. Whether or not we can break out above the top of the overall consolidation, somewhere near the $87.50 level, is a completely different question, but obviously if we did it would be very bullish. In that scenario, oil could enter more or less a “buy-and-hold” situation. On the downside, if we were to break down below the $70 level, that could open up a trap door too much rougher markets.
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