Crude Oil Prices Forecast Video for 07.06.23
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market has fallen again during the trading session on Tuesday, completely wiping out the gap that formed after OPEC announced a massive 1 million barrel cut. At this point, the market has broken back through the bottom of that gap, and now it looks like we are trying to break down toward the $67.50 level. That’s an area where we have seen a lot of support previously, and if we break down below there, it’s possible that we could go down to the $65 level.
On the other hand, if the market were to break above the top of the candlestick for the Tuesday session, then it’s likely that we could go to the $75 level. The $75 level of course is a large, round, psychologically significant figure, and it could open up a move toward the 200-Day EMA. That being said, I don’t expect to see that anytime soon.
Brent Crude Oil Technical Analysis
Brent markets have fallen significantly as well, and we are well below the gap that formed after that weekend announcement. If the cutting of production cannot push markets higher, that tells you just how concerned the global markets are about the possibility of a major recession, or perhaps even something worse. Remember, crude oil is the “lifeblood” of the global economy, so if the global economy of course is going to slow down, then demand falls. In fact, that is normally a horrible fundamental headwind for the price of crude oil, and I think we will continue to see this.
Despite that, if we simply go sideways, that tells you just how negative things are, because less oil in the system should be sending price is higher, but we are seeing quite a bit of lackluster results after that. Ultimately, if we can break above the $80 level, then we could go looking to the 200-Day EMA. All of this being said, I believe that the $70 level underneath will be massive support, and therefore I think we’ve got a situation where we can see a bit of a “floor in the market.”
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This article was originally posted on FX Empire
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