Crude Oil Forecast: Crude Oil Rallies to Kick Off the Week – 28 March 2023
Signs of exhaustion will present selling opportunities.
The West Texas Intermediate Crude Oil market, or US Oil market, has rallied slightly during Monday’s trading session, with the market trying to pick itself up from recent lows. The market is hovering just above the $70 level, which is a minor psychological victory, but it is essential to note that we have seen a couple of hammers recently, indicating that the market is attempting to rebound.
The 50-Day EMA is significant resistance, especially as it is near the $75 level. The market recently broke down below the bottom of a consolidation area, which means we may have to bounce enough to retest that area again. The $72.50 level was previously the bottom of that consolidation, so it could also be an area where we would see signs of trouble. If we see signs of exhaustion and selling pressure, we could retest recent lows. It’s important to keep in mind that oil prices are affected by economic outlook expectations more than anything else. The situation is very murky at this point, so it does make a lot of sense that we would see choppy behavior. That being said, I think about so far more likely than not due to being in an oversold condition.
Brent has also rallied during Monday’s trading session, breaking above the $75 level. Brent has more upside potential than WTI, making it a potential outperformer in the short term. The 50-Day EMA has just broken below the $81 level, and it is likely to get in the way of any significant upward move. Signs of exhaustion will present selling opportunities, especially as the US dollar has strengthened, and the global economy is showing signs of hesitation, which will have a significant influence on demand. Brent is sensitive to Europe and Asia, which are both facing potential issues.
Overall, investors should keep an eye on key support and resistance levels, including the $70, $72.50, $75, and $81 levels.The oil market is highly sensitive to economic outlook expectations, and signs of hesitation in the global economy could lead to lower demand and downward pressure on prices.After all, crude oil is considered to be the “lifeblood” of the global economy as demand is highly sensitive to whether or not goods and services are being transported.
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