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Crude Oil Price Forecast – Crude Oil Continues to See Resistance

By:
Christopher Lewis
Published: May 20, 2024, 13:51 GMT+00:00

The crude oil market continues to see a lot of noise, and the crash of the helicopter carrying the Iranian president only added to the potential noise and confusion. All things being equal, we are going to be in a situation where the market is more or less “buy on the dips”, but we have yet to see follow through.

In this article:

WTI Crude Oil Technical Analysis

You can see that we initially did try to rally a bit, but we have pulled back. In the West Texas Intermediate crude oil market, the $80 level has been very important for some time, and it also features the 50 day EMA right around it. So, it all ties together for a bit of a barrier, and we have turned back around.

It might be worth noting that the death of the Iranian president seems to be an accident. So, the geopolitical concerns that may have been part of the market early are gone. That being said, we are in an area that has a lot of support. So, I still believe this is a buy on the dip type of market going forward.

Brent Crude Oil Technical Analysis

The Brent market initially tried to rally, but then turned around as well. The 200 day EMA seems to be causing noise, but again, I do believe that this is a market that has a lot of noise in this general vicinity with the 50% Fibonacci retracement offering some support and Brent, if we could break above the $84 50 cents level, then I think we really could start to take off. And it’s a similar setup in both grades of oil as you would expect.

And therefore, I think you have to look at it through the prism of whether or not we are offering value. I don’t know if we are quite yet, but I am looking at dips as potential buying opportunities.

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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