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Crude Oil Price Forecast – Crude Continues to Be Noisy

By:
Christopher Lewis
Published: Apr 18, 2024, 13:37 GMT+00:00

The crude oil market has seen a lot of volatility in general, as we have seen a significant pullback, but the Thursday session also suggests that buyers are starting to return.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market initially fell during the trading session on Thursday to reach the 50 day EMA only to turn around and show signs of life. By doing so, it looks as if the market is trying to turn things around and go looking towards the $85 level again.

Keep in mind that although Biden has suggested that the SPR may be emptied, the reality is that the thing that really hit the market hard was a build in crude oil supplies overall. It suggests that there’s less demand. That could be a short-term anomaly as we are heading into a historically important and high area of demand at this time of year. The West Texas intermediate could very well go looking to the $85 level above. Underneath, we have significant support at $80.

Brent Crude Oil Technical Analysis

Brent looks very much the same as you would expect. The market continues to see a lot of noisy behavior, but ultimately, I think this is a situation where we bounce from here as well. The $84.50 level is an area that I think will continue to be support. The $90 level above, I think, ends up being significant resistance. Ultimately, I do think that we’ve had a nice pullback, and value hunters are more likely than not going to be coming back into this picture and trying to take advantage of cheap oil.

Either way, be cautious about the position size more than anything else, as this market will continue to be noisy as there are a lot of external factors influencing the markets at the moment, not the least of which would be tensions in the Middle East.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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