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Crude Oil Price Forecast – Crude Oil Continues to Look for Support

By:
Christopher Lewis
Published: Jul 10, 2024, 13:49 GMT+00:00

The crude oil bounced just a bit in the early hours on Wednesday, as we continue to look for buyers. At this point in time, it is getting to be a market that is trying to form a floor. The next few days should continue to be important, as we get major inflation numbers in the USA.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market has found itself to be supported near the $80 level, and it looks to me like we are going to try to do everything we can to rally a bit. Keep in mind that a lot of people are worried about global growth and whether or not it is in fact slowing down, so that is part of the anchor around the neck when it comes to crude oil. But we also have a lot of travel going on. So, demand is still a thing.

I think at this point in time we are ready to see some type of bounce but keep in mind that the CPI and the PPI numbers come out over the next couple of days and that could have a major influence if we can take the $81.50 level out to the upside, then I think you’ve got a situation where the WTI market could rally towards the $83.65 level. A breakdown below $80 has me resetting and looking for the next trade.

Brent Crude Oil Technical Analysis

Brent is very much in the same situation and now it looks as if the $84 level continues to offer support. So, we’ll have to wait and see if we can bounce. If we can break above the $84.65 level, then I think it’s a real opportunity for Brent to start moving towards the $87 level. Underneath, we have a lot of support near not only the $84 level, but the $83.50 level.

So, if we break down through that, then I think I have to reset that as well. Keep in mind that these two markets will generally move in the same direction unless something very specific about a specific part of the world changes. So, one often leads to the other, and you should have both charts up. And look for one of them there, to tell you what the other one’s going to do.

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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