Crude Oil Price Forecast – Crude Oil Continues to Find Support

Christopher Lewis
Published: May 27, 2024, 13:29 GMT+00:00

The crude oil market continues to see a bit of support underneath, as there have been plenty of trade executed in this general area. The market will be noisy, but in the end, I think the buyers are forming a floor.

In this article:

WTI Crude Oil Technical Analysis

Taking a look at the four hour crude oil chart, you can see that the West Texas Intermediate crude oil market has rallied a bit during the Monday session. But keep in mind that it’s also Memorial Day in the United States, so there’s a lot of liquidity issues. So, I don’t read too much into the candlestick of the early hours in North America, but what I look into is the fact that we have found support at an area where we needed to find it in the form of roughly $77.

At this point, I think it’s likely that the market could go looking to the $80 level above. But with that being said, I do think that we’ve got a scenario where you have to be cautious and recognize that a lot of choppiness will be the norm. This time of year, is typically very bullish for crude oil, so I’m perfectly fine buying it, but I do recognize that it’s not necessarily going to be the easiest market to deal with.

Brent Crude Oil Technical Analysis

Brent markets look very much the same. If we can break above the $83 level, then I think it brings in a rush where we try to get to $84.50. Short-term pullbacks continue to be buying opportunities as there will be a lot of demand for crude oil.

And of course, there are a lot of geopolitical concerns in the Middle East as per usual. With that being the case, I think it makes a lot of sense to be a buyer of dips and to not worry about shorting the market at all.

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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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