Crude Oil Price Forecast – Crude Oil Continues to Show Uncertainty

Christopher Lewis
Published: Apr 22, 2024, 13:51 GMT+00:00

The crude oil markets continue to see a lot of people trying to sort themselves out.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market fell a bit during the trading session on Monday to break down below the 50 day EMA. That being said, the $80 level underneath is an area that a lot of people are going to be paying attention.

Of course, being a large round number attracts attention in and of itself, but it was also a previous resistance and should now have a certain amount of market memory attached to it. The 50 day EMA being broken, of course, is a negative sign, but this is an area where I would expect to see some type of bounce. On the other hand, if we break down below the $80 level, it’s likely we go down to the 200 day EMA.

Brent Crude Oil Technical Analysis

Looking at the Brent market, it’s very much the same situation with the $84.50 level as the floor where we had seen a resistance barrier. This is the same thing we have broken below the 50 day EMA. All things being equal, this is a market that is focusing on different things on different days. It was tension in the Middle East, and now that we did not escalate much further, at least not yet.

Oil cools off because people are now paying attention to whether or not the Federal Reserve is going to flood the market with liquidity and therefore drive up demand. This is a market that is not pricing in geopolitical concerns anymore after the whipsaw action that we had seen on Friday.

Now, at this point, we are getting fairly close to the bottom of the overall consolidation. So, on the bounce, I’d be interested in buying. But quite frankly, the market is too erratic to put a lot of money into right now.

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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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