Forecast of Crude Oil Prices – Crude Oil Markets Continue recuperating

The crude oil markets have risen somewhat during Monday’s trading session, although volatility remains high.

Analysis of WTI Crude Oil Technicals

The West Texas Intermediate Crude Oil market rebounded somewhat during Monday’s trading session, as prices had become slightly oversold. As expected, the $90 level is sitting just above and producing a bit of commotion. Just recently, the 200-Day EMA was crossed by the 50-Day EMA, establishing the so-called “death cross.” Ultimately, we are in a significant decline, but we needed to rebound. Whether or whether we will continue to rise is a whole separate matter, but I am looking to short this market in the range of $90-$91.

Analysis of Brent Crude Oil Technical Data

As we approach the $95 barrier, the Brent market has risen significantly during the trading session. This could cause some psychological resistance, but I believe it’s just a matter of time before the 200-Day EMA causes some psychological opposition. In addition, much of the reaction we’ve seen has been a result of Russian losses in Ukraine, but I don’t see that changing much at this time.

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Early in the day, the US dollar has been pummeled, possibly for the same reasons, which has a modest impact on this market. If we were to break below the $90 level, there is a chance that we may fall to the $85 level, which is my objective given sufficient time. Before shorting, we must see symptoms of weariness, which I anticipate we will see closer to the 200-day exponential moving average. In this market, a little bit of patience will go a long way.

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