Crude Oil Price Forecast – Crude Oil Continues to Consolidate in a Familiar Range

Christopher Lewis
Published: May 23, 2024, 13:52 GMT+00:00

The crude oil markets bounced a bit in the early hours of Thursday, as the market continues to try to sort out whether or not we can break out of the consolidation.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market rallied quite nicely during the early hours on Thursday, but really at this point, I think you’ve got a situation where we are just simply trying to carve out a bottom.

When you look out on the charts from a longer term standpoint, you can see that we are continuing to use the 50% Fibonacci retracement level as a bit of support, but we also have a lot of resistance in the West Texas Intermediate and crude oil market at the $80 level. I think we’re just simply bouncing around back and forth trying to find some type of directionality.

Typically speaking, this is a time of year that’s very bullish. But at the same time, we keep building inventory, so it is not necessarily a clear cut signal. We have geopolitical tensions of course that could come into the picture as well.

Brent Crude Oil Technical Analysis

The Brent market has also turned around to show signs of life. And as we look at this chart from a longer term standpoint, we did bounce from right around the 50% Fibonacci retracement level.

The $84.50 level above should be a significant resistance barrier, and if we can get about there, then we can really take off. It’s the same factors that we see over in the WTI grade that are driving the Brent market. I think you just have a lot of value hunting. And ultimately this is a market that I think will continue to be noisy. But I also think eventually we will find a reason to break out either demand over the summer or maybe something geopolitically related.

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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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