Crude Oil Price Forecast – Crude Continues to Move on Headlines

Christopher Lewis
Published: Apr 24, 2024, 13:55 GMT+00:00

The crude market is one of the most difficult ones to grasp at the moment, as it seemingly is moving on to the latest headline, rumor, or even false headline out of the Middle East.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate market pulled back just a bit during the early hours on Wednesday, as we continue to bounce around in the same consolidation area. Quite frankly, at this point crude oil has essentially become untradable because there is volatility all over the place.

We are in a situation where it would only take one headline out of the Middle East to send this market straight up in the air, $10. On the other hand, if things stay calm, then we may be trying to settle into a consolidation area. And quite frankly, that’s what I’m hoping for, because then it becomes a market that we can get our hands around. The $80 level underneath could be a support level, right along with the 50 day EMA, which has proven itself to be important over the last couple of days.

On the upside, the $85 level has been resistance, so we’ll see if that holds. But right now, we’re in the middle of it, so it’s just a mess.

Brent Crude Oil Technical Analysis

Brent looks very much the same as it is in the middle of its consolidation area, currently hanging around the $87 level. This is a market that I think, given enough time, probably looks at this through the prism of buying on the dip, but that’s going to be closer to either the 50 day EMA or the $84.50 level.

Again, Brent is going to have the same problem WTI crude oil has, and that is that simply it’s based on the latest rumor drama headline, false headline, you name it. The $90 level above continues to be in the ceiling. While I am bullish longer term I buy dips. I don’t jump in with both feet.

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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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