Crude Oil Price Forecast – Crude Oil Continues to Try to Build a Base

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WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market fell significantly during the early hours on Wednesday, reaching below the $77 level. However, we have seen a little bit of a pushback, and we are most certainly in an area that previously has been important, so I’m watching this very closely. If we can break above the 200-day EMA, that would perhaps suggest that we have found a short-term bottom. If we can break above the daily candlestick on Wednesday, that might be enough for momentum chasers to get involved with this market as well. Keep in mind that there are a lot of geopolitical concerns out there, and despite the fact that the market is only paying attention to the next day or two, the reality is there is going to be the occasional explosive headline that could send this market higher.

Brent Crude Oil Technical Analysis

Brent markets of course look very similar, falling only to turn around in the middle of the day. At this point, I’m paying close attention to the 200 day EMA above. If we can take that out, then the $84.50 level could be a potential target. Anything above there probably brings in a lot of FOMO trading as Brent will continue to be a market that takes its cues from geopolitics, global demand, which should be rising, and of course supply issues if they occur, which there are some issues in the Red Sea, obviously. So, with all of that being said, I do think we’re in the middle of a bottoming process, but you have to be somewhat cautious with these moves because they can take longer than you expect.

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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