Crude Oil Price Forecast – Crude Continues to Look For Buyers

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Published: May 9, 2024, 14:31 GMT+00:00

The oil markets rallied a bit in the early hours on Thursday, but at this point aren’t quite ready to go higher, at least not yet.

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market rallied a bit during the trading session on Thursday, only to turn around and show signs of hesitation. There are a couple of different things going on at the same time that make this move make sense. For example, we have the 200-day EMA sitting just above, and that typically will cause some noise.

But at the same time, we had the weekly unemployment claims come out hotter than anticipated, and perhaps traders are worried about the idea of the U.S. economy slowing down. Nonetheless, we are in a massive consolidation area, and I think we are still in the midst of forming a bottoming pattern. Inflation and geopolitical concerns have gone nowhere, and I do think eventually this market tries to take out the $80 level and go higher. Underneath the $77 level offers a certain amount of support, so do keep that in mind.

Brent Crude Oil Technical Analysis

In the Brent market, we had very much the same action as we popped over the 200 day EMA. We’re watching the $84.50 level as resistance and turned around. And we also have support near the $82 level. Again though, we are in an area that previously had been resistant, so I do think this is an area where you could see a bit of a bounce. It doesn’t mean it happens overnight, it doesn’t mean that it’s going to be easy, nor does it mean that it’s going to happen quickly. This may be more of a grind. That being said, we are in a sickly bullish time of year for crude oil overall, and of course we have war throughout the Middle East, so there’s plenty of reasons to think this could go higher.

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About the Author

Christopher Lewisauthor

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.