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Crude Oil Price Forecast – Crude Continues to See Volatility

By:
Christopher Lewis
Published: Apr 16, 2024, 13:47 GMT+00:00

The crude oil markets have had a tough session early on Tuesday, as the markets continue to move based on the latest headlines out of the Middle East.

In this article:

WTI Crude Oil Technical Analysis

The WTI crude oil market had initially tried to rally during the trading session on Tuesday but has turned right back around. At this point, it seems like crude oil is just going to continue to move on the latest headlines coming out of Israel, Gaza, Iran, and places like that.

Crude oil is still in a secular bullish market, and of course, this time of year, we typically see the driving season in the United States pickup, which has a major influence on the West Texas Intermediate grade. If we can break above the $87 level, it’s very likely that the market goes looking to the $90 level. Underneath, if we were to break down below the hammer from the Monday session, then we may have to reset a little closer to the 50 day EMA, but either way, there are buyers underneath.

Brent Crude Oil Technical Analysis

Brent markets look very much the same. And if we can take out the $92 level to the upside, it’s possible that the market could go looking to the $94 level. Underneath, if we were to break down below the hammer from the Monday session, then in the Brent market, I would anticipate a potential run towards the 50-day EMA where there should be plenty of buyers. Again, I don’t see how oil falls for a significant amount of time, although we may get a pullback.

That wouldn’t necessarily be out of the realm of possibility, nor would it necessarily be unhealthy. Plenty of geopolitical concerns in the Middle East will continue to put a little bit of a floor underneath the oil. Plus, quite frankly, the supply seems to be dwindling a bit as well, so keep that in mind.

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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