Crude Oil Price Forecast – Crude Oil Continues to Look Strong

Christopher Lewis
Updated: Feb 19, 2024, 15:33 GMT+00:00

Crude oil markets were rather quiet during the Monday session but continue to look strong overall.

In this article:

WTI Crude Oil Technical Analysis

You can see that the WTI crude oil market has pulled back just a bit during the trading session on Monday in electronic trading. The 200 day EMA has offered a bit of support, so we’ll have to wait and see how this plays out. But the $80 level above does seem to be an area where we have a lot of selling pressure. If we can break above there, then I do believe that the $80 level opens up a move to the $82.50 level, possibly even the $85 level. Short-term pullbacks at this point in time continue to find a buying opportunity all the way down to at least the 50-day EMA, possibly even lower than that. In general, I think we are starting to see crude oil start to flex its muscles.

Brent Crude Oil Technical Analysis

Brent is very much in the same situation. I believe that the $83.50 level will be a major resistance barrier, and if we can break above there, then we could go to the $87.50 level, possibly even the $90 level. In general, I think you are a buyer of dips. The 50-day EMA sits right around the $80 level as well.

And the 50 day EMA of course is something that a lot of people pay attention to. Keep in mind that you have a scenario where the central banks around the world look likely to loosen monetary policy and that a lot of traders feel will get the economies humming again. And if that’s the case, demand for crude oil will pick up. Furthermore, there’s a seasonality to this market as the driving season starts and travel season. A little bit of an inverted head and shoulders is forming in the chart, it’s a messy one, but it’s there, and I think a lot of people are paying attention to as well. So with that being said, I think it’s probably only a matter of time before we break out.

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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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