Crude Oil Price Forecast – Crude Oil Markets Pulled Back Again

Crude Oil Prices Forecast Video for 26.01.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has pulled back just a bit during the trading session on Wednesday to show signs of hesitation. Ultimately, I think this is a situation where you have plenty of negativity around the world when it comes to global growth. After all, it looks very weak at the moment, but we also have to look at this through the prism of central banks around the world tightening monetary policy rather aggressive, so that’s going to step on the neck of growth as well. As long that’s going to be the case, I think oil has quite a bit of noise attached to it. If the 50-Day holds, then we can continue to talk about the inverse head and shoulders that recently broke out.

Brent Crude Oil Technical Analysis

Brent markets also have fallen a bit during the trading session, threatening the potential inverse head and shoulders, and the $85 level underneath. This happened to be where the 50-Day EMA currently resides, so it all ties together quite nicely. With this being the case, if we break down below that previous neckline, that would be a very negative sign as it would be a failed pattern, which typically catches a lot of market participants on the wrong side of the trade. That ends up causing a lot of momentum, which of course is something that we will all be looking for. The oil markets have been very noisy as of late, so it will be interesting to see how this plays out. With this, I’d be very cautious with my position size.

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