Crude Oil Price Forecast – Crude Oil Continues to Show Strength

Christopher Lewis
Published: May 29, 2024, 14:00 GMT+00:00

The crude oil markets pulled back in the early hours of Wednesday, but at this point looks as if it going to be supported just below and is already starting to show a potential bounce.

In this article:

WTI Crude Oil Technical Analysis

The four-hour oil chart in front of you for the West Texas Intermediate crude oil market has quite a bit of hints as to where we go next period. We broke above the $80 level and then since have decided to consolidate a bit. This suggests that we are getting on footing. If we can break above the $80.50 level, then I think we could go as high as $82.50 somewhat quickly.

Short-term pullbacks at this point in time would be a scenario where we probably find a lot of value. The 50-day EMA is sitting right around the $78.50 level and is rising, so I think if we get some type of wipeout, that would be massive support. But really, at this point in time, this looks like a market that’s ready to go higher.

Brent Crude Oil Technical Analysis

Brent markets have gone back and forth as well. The $84.50 level is an area that a lot of people are going to pay close attention to. And if we can break above the last couple of candlesticks on the four hour chart, we should go looking to the $87, but it’s going to take some time. Geopolitics, the fact that it’s the dead of summer just now starting, and that’s a huge demand time for crude oil to me suggests that we are ready to go higher.

This is a market that every time we pull back, I think there will be buyers willing to step in and take advantage of cheap oil. This is probably a cyclical trade for just a few months, but ultimately, if we were to break down below the $80 level, then it’s possible that we could really see the market fall apart, but I don’t see that happening anytime soon. And there’s really nothing on the chart that suggests that’s a possibility as well without some type of massive surprise announcement.

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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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