Crude Oil Price Forecast – Crude Oil Markets Break Neckline
Crude Oil Prices Forecast Video for 18.01.23
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market has initially dropped a bit down to the 50-Day EMA, and then broke above the neckline of the inverse head and shoulders that I have marked on the chart. That being the case, the market is likely to see a lot of noisy behavior, but if we can break above the $82 level, I think that will confirm things for people, and it’s likely that the market will go look into the 200-Day EMA.
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On the other hand, if we break back down below the 50-Day EMA, it will cause a bit of a failed pattern, and we are more likely than not going to go into continued consolidation at that point.
Brent Crude Oil Technical Analysis
Brent markets initially pulled back a bit during the trading session on Tuesday, testing the 50-Day EMA as well, but also have broken above the neckline from the inverted head and shoulders, and it now looks as if it’s on the precipice of breaking out toward the 200-Day EMA. The overall “narrative” now revolves around the idea of a soft landing, so therefore people are looking at the idea of demand picking up.
That being said, there are a lot of moving pieces right now so we get a sudden “risk off move”, that could put a lot of negativity into the Brent market. In that scenario, we could drop back down to the $80 level, which is a large, round, psychologically significant figure and an area where people will be paying close attention to based upon previous trading action.
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