Crude Oil Price Forecast – Crude Oil Markets Testing the Top of a Short-term Range

Crude Oil Prices Forecast Video for 18.12.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has gone back and forth at the top of a short-term trading range, and now it looks as if we are going to try to break out to the upside, but at the same time we also have to pay attention to the fact that a lot of people are looking for recession in the United States, and if that’s going to be the case, that could be a bit of a drag on crude oil.

The $72.50 level is the barrier that I am referring to, and if we can break above there, it’s possible that the WTI Crude Oil market is looking to the $75 level underneath. Underneath, we have the $68 level offering significant support, and I think in the short term it would not be a huge surprise to see this market go back and forth. In general, this is a scenario where traders will look at this through the prism of trying to build a little bit of a basing pattern.

Brent Crude Oil Technical Analysis

Brent markets also have slammed into a bit of resistance near the $77 level, and if we can break above that, then the market is likely to continue to go higher, perhaps reaching the $80 level. The 50-Day EMA has dropped down toward that area, and therefore it does offer a significant amount of resistance. If we drop from here, then it’s possible that the market could see plenty of support near the $73 level. Ultimately, I think this is the same type of situation where we are just trying to form a bit of a consolidation pattern that could end up being accumulation according to Dow theory. Ultimately, we need to see this as a situation where traders are probably going to come in and try to pick up value, but underneath the market also looks at the $70 level, which is a major floor.

Ultimately, crude oil is going to be very sensitive to the idea of whether or not we are going to drop into a major recession, but at the same time, we are close to a major floor in the market from longer-term charting.

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