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Crude Oil Price Forecast – Crude Continues to Test Resistance

By:
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.

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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