Crude Oil Price Forecast – Crude Oil Continues to See Support

Christopher Lewis
Published: May 21, 2024, 13:38 GMT+00:00

The crude oil market continues to see a lot of support, despite the fact that there is a ton of momentum at this point. This market continues to question whether or not there is a surge coming due to summer.

In this article:

WTI Crude Oil Technical Analysis

Take a look at the crude oil market on the four hour chart. You can see that the West Texas Intermediate Market did fall down toward the 50% Fibonacci retracement level from the bigger move. But it does appear that it’s trying to bounce from here. We have been in a consolidation range for a while, with the $77 area being support, while the $80 level above acts as resistance.

It is worth noting that the $80 level, of course, is a large, round, psychologically significant finger that a lot of people will pay attention to and therefore, I think it might be a little bit difficult to get above. That being said, I suspect it is probably only a matter of time before we do break above that $80 level and go looking to the $82.50 level after that.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same, bouncing from the $82 area, an area that has been important more than once. The $84.50 level, of course, is an area that a lot of people will pay close attention to, as it has been previous support and resistance. And I think that might be your target for any type of recovery.

Whether or not that happens easily remains to be seen, but I do suspect that’s probably the more likely of outcomes. If we do break down in the crude oil market, we could see a $2 drop in both grades rather quickly. But at this point in time, we have a lot of concerns about geopolitics and perhaps even supply in what is the busiest time of year that could cause this market to really shoot straight up in the air.

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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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