Crude Oil Price Forecast – Crude Oil Markets Racing Towards 200 Day EMA

WTI Crude Oil

The West Texas Intermediate Crude Oil market has broken down a bit during the course of the trading session on Friday, as it looks like we are getting ready to threaten the 200 day EMA. The 200 day EMA of course is going to continue to attract a lot of attention, and as a result we could see a little bit of support. However, if we break down below the 200 day EMA it opens up the door to the $60 level. What I anticipate being the most likely of scenarios is that we rally a bit only to sell off again below the $65 level as it should now offer resistance. Either way, this market looks as if it is broken.

Crude Oil Video 23.08.21

Brent

Brent markets have shown themselves to be somewhat negative as well, as we continue to plunge towards the 200 day EMA. The 200 day EMA of course is going to continue to be difficult support, but it does seem as if we are going to at least test the area. The area giving way could open up a major move lower, as we would see a lot of algorithms dump in this market. Rallies at this point probably see quite a bit of resistance at the $67.50 level, an area that had been previous support.

Pay attention to the west dollar, because quite frankly the market is very sensitive to the value of the dollar. Furthermore, the dollar going higher typically means that we are in more of a “risk off” type of situation, so that of course is worth paying attention to as well.

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