Crude Oil Price Forecast – Crude Continues to Test Resistance

Christopher Lewis
Updated: Jun 18, 2024, 16:28 GMT+00:00

The crude oil markets certainly continue to see a lot of noise, which makes sense as we are testing serious resistance barriers. The time of year is typically bullish, and the geopolitical issues haven’t gone anywhere.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market pulled back slightly during the early hours on Tuesday, but it is still threatening the crucial $80 level. $80 is of course, a large round psychologically significant figure. But perhaps more importantly, it’s an area where we’ve seen resistance previously. And with that being the case, I think it makes a lot of sense that the market would want to challenge that and perhaps try to break through it. This is a time of year where we typically see strong demand for crude oil. So, I think it makes a lot of sense that we see this market trying to break that level. I still believe that short-term dips will end up being buying opportunities.

Brent Crude Oil Technical Analysis

In the Brent market, we have very much the same setup, although the resistance barrier is a bit higher from where we are here. The $84.50 level for me is the area we need to break above to continue going higher for a longer term move. And I do think that eventually we will get there. It may be a situation where West Texas Intermediate and Brent simply follows.

You do see that quite a bit in these markets. Short-term pullbacks continue to be buying opportunities and much like with West Texas Intermediate, there is typically more demand in the summer months. And of course, it also has a lot of concerns when it comes to geopolitics that it will be dealing with. And with that being the case, I think you have to look at this through the prism of finding dips as value.

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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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