Crude Oil Price Forecast – Crude Oil Continues to Build a Base

Christopher Lewis
Published: May 3, 2024, 14:31 GMT+00:00

Crude oil continues to see a lot of people trying to jump into the market and build a base. At this point, I think this is a market that will sooner or later have to make a bigger decision.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market showed itself to be rather noisy during the trading session again on Friday, as the jobs numbers came out lower than anticipated. This gives us a little bit of a mixed reaction due to the fact that there may be less demand because there are fewer jobs being added, but at the same time, some people will start buying because the Fed is actually going to start cutting.

Sometime later this year that could boost demand due to cheap money. We’ll just have to wait and see how that plays out. At this point, the signal for me is if we can break above the $80 level, then I become much more interested in going long of crude oil. I don’t want to shorten the market, though I do think there is plenty of support just below. So now it’s just a simple matter of letting the market move first and following.

Brent Crude Oil Technical Analysis

Brent markets look very much the same, and it’s worth noting that we are hanging around the 200 day EMA as well in the Brent market. I’m particularly interested in the $84.50 level, because that’s an area that previously has been both support and resistance. If we can break above there, then I think it’s very likely that the Brent market will go higher as well.

And I expect these signals to happen roughly at the same time. Crude oil markets have completely discounted any type of geopolitical concerns, which means that an errant headline could turn this thing right back around as well. So always be aware of that. Furthermore, cyclically speaking, this time of year is typically very bullish for crude oil anyway.

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.

Did you find this article useful?