Crude Oil Price Forecast – Crude Oil Markets Selloff to Kick Off the Year

Crude Oil Prices Forecast Video for 04.01.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market initially tried to rally and break above the 50-Day EMA, only to turn around and break down rather significantly. Ultimately, the crude oil market is dancing around the moving average and the $80 level. If we break down below the hammer from last week, then it could send this market down to the $75 level, possibly even down to the $70 level.

On the other hand, if we break above the top of the candlestick for the trading session on Tuesday, then the market could very well go looking to the $85 level. Keep in mind that the area between the 50-Day EMA and the 200-Day EMA typically causes a lot of noise, so therefore I think if we get any signs of exhaustion, traders will come in and start shorting again.

Brent Crude Oil Technical Analysis

Brent markets also struggled to stay above the 50-Day EMA, as $85 level continues to offer resistance. The area between the 50-Day EMA and the 200-Day EMA indicators typically is very noisy, and very resistant. Keep in mind that a lot of people were out there worried about the potential global demand, so therefore it’s not a huge surprise to see that the initial movement of the year is going to be to sell crude oil. Now we have to figure out whether or not the recent rally has had more to do with short covering than buying. It’ll be interesting to see all this plays out, but at this point I think it’s worth paying close attention to this area we are in, because it could be an inflection point.

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