Crude Oil Price Forecast – Crude Oil Continues to Look Bullish

Christopher Lewis
Published: Feb 20, 2024, 14:52 GMT+00:00

The crude oil markets continue to look bullish overall, as the markets are in the midst of forming some kind of “rounded bottom” that the market participants can all see, and we have an obvious barrier just above.

In this article:

WTI Crude Oil Technical Analysis

You can see that crude oil in the WTI grade has pulled back just a bit only to turn around and show signs of life. With that being the case, the 200-day EMA of course is an indicator that a lot of people will be paying close attention to, and it does look like it’s trying to offer a little bit of support. This is a market that continues to attract buyers based on value anytime the markets drop in the slightest.

If we can clear the $80 level, then I believe that the crude oil market, the WTI grade could go to $82.50, possibly followed by the $88 level. Underneath we have the 50-day EMA that comes into the picture as well, as it could offer significant support. This is a commonly watched technical indicator, so it makes a lot of sense that this is a region worth paying attention to.

Brent Crude Oil Technical Analysis

Brent continues to look very bullish at this point with the 200 day EMA offering support and the $84 level above offering resistance. If we can clear that level, then I think it’s likely we go to the $90 level. The 50 day EMA underneath continues to offer support with the $80 level, and I think that’s your short-term floor. I believe both of these are going to form rounded bottoms and take off to the upside. The seasonality certainly favors crude oil at the moment as we are getting ready to head into the summer season, which of course means more driving, more transportation, more flights, things like that.

So typically, crude oil does fairly well this time of year anyways. With that being said, everything is pointing to higher pricing. And I think that short-term pullbacks continue to offer buying opportunities in a market that is starting to see dwindling supply. So that of course comes into the picture. Furthermore, central banks around the world cutting rates could increase economic activity, and I think that is also something that traders are trying to get in front of as well.

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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