Crude Oil Price Forecast – Crude Oil Continues to See Consolidation

Christopher Lewis
Updated: Apr 11, 2024, 15:02 GMT+00:00

The crude oil markets continue to see a lot of sideways action overall.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market continues to hover around the $85 level. The $85 level is an area that a lot of people will be paying attention to due to its past price action, and then again, due to the fact that it is a large round, psychologically significant figure.

All things being equal, it almost looks as if we are trying to form some type of flag. And that, of course, is a technical indicator that a lot of people will be paying attention to as well. Even if we do break down from here, I think there is a massive amount of support at multiple levels, all the way down to the $80 level where the 50 day EMA currently sits. In other words, any dip at this point is a buying opportunity in West Texas Intermediate crude oil.

Brent Crude Oil Technical Analysis

Over in the Brent market, we initially tried to rally, but then pulled back a bit as we continued to struggle to stay above the $90 level. But I suspect that it is probably only a matter of time before we go higher as well. The $88.50 level, of course, offers support, and then after that you have the $87 level. The 50 day EMA is currently sitting around the $84.50 level. And I think that your floor in the market is much like the WTI market, it is one that you want to be buying on dips and you definitely don’t want to start shorting. All things being equal, this is a market that has plenty of reasons to go higher, not the least of which would be the supply issue.

But we also have to worry about geopolitical factors. And there’s a cyclical trade due to the fact that there’s a lot more travel from March to the month of November or so in the Northern hemisphere. So cyclically speaking, crude oil typically does better this time of year anyway.

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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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