WTI Crude Oil Forecast: Bulls Bidding Price Towards $22.50 – 09 February 2023
Keep in mind that the market has been very erratic but has been contained in this range as we are trying to figure out whether there is going to be enough global growth to demand crude oil.
The market has formed 3 green candles in a row, and therefore I think it suggests that we are going to have a certain amount of bullish pressure, but whether we can break above that resistance barrier is a completely different question. After all, it’s not only an area that’s been very reliable as of late but also an area that is starting to attract the 200-Day EMA. That typically will attract a lot of technical traders, and therefore I think it does make a certain amount of sense that we would see a bit of hesitation.
Keep in mind that the market has been very erratic but has been contained in this range as we are trying to figure out whether there is going to be enough global growth to demand crude oil. After all, crude oil is the “lifeblood” of the global economy, so we need to see a demand for transportation to make crude oil go higher. If we do break out to the upside, it’s very possible that we could go to the $90 level, but we have a lot of work to make that happen.
On the downside, if we were to break down below the $72.50 level, then the $70 level will almost certainly be a target as it is the next large, round, psychologically significant figure. Breaking down below the $70 level opens a floodgate of FOMO trading, and therefore could be massively negative. I think at best you are probably going to see a lot of choppy behavior back and forth, and therefore you must see it as a market that you probably should be trading from short-term charts, but unfortunately, right now we are basically in the middle of the range, essentially “fair value.”
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