Crude Oil Price Forecast – Crude Continues to Sort Itself Out

Christopher Lewis
Published: Apr 29, 2024, 13:49 GMT+00:00

The crude oil markets continue to be noisy, but at this point I think it has more likely buying pressure than selling when it comes to anything longer-term.

In this article:

WTI Crude Oil Technical Analysis

The WTI crude oil market has gone back and forth during the course of the trading session here on Monday, as we are trying to sort out where to go next. Underneath we have the 50 day EMA, which is sitting right around the $81.50 level and is rising.

That has offered significant support over the last couple of trading sessions. So, at this point in time, I think a pullback is more likely than not going to offer a buying opportunity based on value. On the other hand, if we do turn around and break above the top of the Friday session, then it’s very likely we will go looking to test the $85 level above, which had been a major barrier.

Brent Crude Oil Technical Analysis

All things being equal, I do not have any interest in selling oil in the Brent market. It looks very much the same as crude oil. Factors continue to come in and look at geopolitics, the supply chain issues and of course, demand this time of year is generally positive for petroleum. So, I am looking to buy both grades of crude oil be it Brent or WTI.

But I also recognize that we are currently essentially in the middle of consolidation here in the Brent market. So it’s more or less a 50-50 shot as to where we go next. I prefer to buy dips in this market, especially if we get near the 50 day EMA, which is right around the $86 level above. We have a major ceiling at $90, which has a lot of psychology attached to it as well, so that might be difficult to overcome.

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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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