Crude Oil Price Forecast – Crude Oil Markets Rally in Thin Volume

Christopher Lewis
2 min read
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Crude Oil Prices Forecast Video for 21.02.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Monday, as we have seen a lot of noisy and choppy behavior in thin volume. Ultimately, this is a market that I think continues to see a lot of choppiness, as we are in the middle of a major consolidation area. Because of this, do not be surprised if we have a little less than straightforward move ahead. After all, there seems to be a lot of questions asked about whether or not there is going to be enough global demand for crude oil pickup, and therefore it makes quite a bit of sense that we would see confusion.

At this point, I would anticipate back and forth trading more than anything else, and with that being the case you are probably going to be better off looking at this through the prism of a range bound system. Most range bound traders love crude oil at the moment, but eventually we could break out of this range. The $82 level above has been the ceiling, with the $72 level underneath being support. If we can break out of there, we can move about $10, but until we get some type of catalyst, that’s going to be difficult.

Brent Crude Oil Technical Analysis

Brent markets have been very choppy as well, sitting just below the 50-Day EMA. The 50-Day EMA is very flat, suggesting that perhaps we don’t really have any real momentum. The market is one that will behave like the West Texas Intermediate Crude Oil market, as it looks for some type of straightforward signal for economic demand. The $90 level above is significant resistance, while the $77.50 level below offers support.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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