Crude Oil Price Forecast – Crude Continues to Chop

Christopher Lewis
Published: Apr 30, 2024, 14:04 GMT+00:00

The crude oil markets continue to look for some kind of direction, as we are essentially in the middle of the larger consolidation area in both grades that I deal with.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market was very noisy during the early hours on Tuesday, but quite frankly, I think we are essentially in the middle of consolidation and that’s probably to be expected. Underneath we have the 50 day EMA, which of course will have a major influence on technical trading as it has offered significant support multiple times in the recent past.

If we were to break down below there, then we could take a look at the $80 level. But at this point, I don’t know that we’re going to break down like that. On the upside, we have the $85 level, which is an obvious ceiling in the consolidation. But I don’t know that we are going to break above there very easily.

I think that is more or less going to contain the market for a while. And as we basically have a range between $80 on the bottom and $85 on the top, and currently find so right around $82.50 or so during the day, we’re basically right in the middle of a choppy consolidation.

Brent Crude Oil Technical Analysis

Brent markets look very much the same as the $84.50 level underneath is a floor, but we do have the 50 day EMA offering support as well. Above, we have the $90 level, which obviously will offer a bit of a ceiling. Keep in mind that there are a lot of geopolitical risks out there when it comes to oil, and I don’t think we are pricing that in. However, I currently think the fact that we have not had a major escalation in the Middle East is probably the main narrative right now, but we’ll have to wait and see.

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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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