WTI Crude Oil Forecast: Oil Still in Consolidatoin Phase – 22 February 2023
Traders can use technical analysis to help predict possible price movements.
Oil prices are making great trade opportunities
The West Texas Intermediate Crude Oil market price has shown a slightly positive trend during Tuesday’s trading session, as the market struggles to determine the balance between supply and demand. The overall economic situation has posed many questions for the industry, as crude oil is essentially the lifeblood of the economy, and its demand greatly depends on transportation requirements for shipping goods and services.
Currently, inflation rates seem to be slowing down, but there is still a lot of inflation in the market.Additionally, central banks worldwide are tightening their monetary policies, which is likely to cause significant issues.As a result, traders are closely monitoring the crude oil market’s behavior.
Looking ahead, traders are likely to view the $82 level as a major resistance barrier, while the $72 level is seen as a crucial support level. Furthermore, the 50-Day exponential moving average is just above the current market level and is acting as a resistance barrier. Due to the noisy nature of the market and the consolidation area it is currently in, it is best to avoid making aggressive trades at this time.
It is important to note that crude oil is a highly volatile market, and there is no guarantee of a specific price direction. However, traders can use technical analysis to help predict possible price movements. In the case of the crude oil market, traders should closely monitor those 2 support and resistance levels that I mentioned previously, as it is so dead obvious.
As things stand right now, a lot of questions we asked about OPEC, because they have gone oddly quiet, after cutting production by 2 million barrels. Initially that was a bullish thing for oil, but people began to realize that perhaps they saw something coming down the road that nobody else seemed to be paying attention to, and that was a slowing global economy. I believe that is still the case, and therefore even if we do rally at this point, it’s likely that the upside is at least somewhat limited. That being said, there’s also a little bit of a floor under the market at the same time, as the United States has to replace its Strategic Petroleum Reserve. In other words, I just don’t see how we get out of this consolidation rectangle in the short term.
Ready to trade WTI/USD? Here are the best Oil trading brokers to choose from.