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Crude Oil Price Forecast – Crude Continues to Fall

By:
Christopher Lewis
Published: Jun 3, 2024, 14:58 GMT+00:00

The crude oil market fell a bit in the early hours on Monday, as the market is seemingly at a crossroads. This is a market that has to be watched closely, as the major support barrier underneath is in focus in both markets we follow.

In this article:

WTI Crude Oil Technical Analysis

Looking at the WTI 4-hour chart, you can see that the market has pulled back just a bit to show signs of negativity yet again on Monday. The question here is going to be whether or not this support holds. We are most certainly in an area that it needs to. If we break down from here, then it’s likely that we could make a move towards $75.

Quite frankly, this is a time of year that is generally strong for crude oil. So this goes against the cyclicality of the markets. There are a lot of concerns out there as to whether or not the economy is going to tank. This might be one place where traders are playing that idea. But I think if we can turn around and gain the market reaching above the $77.50 level, then it becomes a buying opportunity.

Brent Crude Oil Technical Analysis

Brent looks very much the same, both look pretty weak. I think if we turn around and go looking to the $81.50 level and overcome it, then it’s a buying opportunity. But I have to say that oil looks rather weak at the moment, and I do think that it’s easier to stand out of the way because I do believe sooner or later it’s going to get a lot of buying pressure based on the time of year, geopolitical issues and things like that.

I don’t really like shorting oil on the whole, so I will probably step on the sidelines and just wait for buying opportunity such as the two that I’ve mentioned in this video, but if we do fall from here, then I’ll be looking below at potential support levels as they appear.

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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