Crude Oil Price Forecast – Crude Oil Continues to Drive Higher

Christopher Lewis
Updated: Jun 19, 2024, 18:15 GMT+00:00

The oil market has been somewhat quiet during the Wednesday holiday in the United States, but it has shown signs of rallying higher, and breaking out. This is probably a sign that you should be paying attention to.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market was slightly positive in the early hours on Wednesday but has given back a little bit of the gains as I think liquidity is probably going to be the big story here. After all, it’s Juneteenth in the United States, meaning that the futures markets themselves are closed during the US hours, which is where most of the liquidity is found. Electronic overnight trading, of course, does come into play, and that might be part of what we’ve seen, but I think at this point in time, you need to pay close attention to the $80 level.

The $80 level is a large round, psychologically significant figure, and an area that previously had been resistant. So I think a pullback to that area probably attracts a lot of market memory, and a lot of people willing to jump in to the upside, and therefore I think it offers tremendous value.

Brent Crude Oil Technical Analysis

In the Brent market, we have peaked above the recent resistance area at $84.50, and now we are pulling back towards it. I think this is the same situation. We are going to see buyers jumping into this market to try to push it higher, but whether or not it can actually happen on Wednesday might be a completely different question as liquidity might be an issue, as I stated earlier.

So, with that being the case, I think this is a market that ultimately breaks out and you look at pullbacks as potential value that you take advantage of. I have no interest in shorting oil as there are far too many geopolitical concerns out there and then of course you have to think about the cycle of demand that we have when it comes to crude oil which typically peaks over the next couple of months.

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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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