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Crude Oil Price Forecast – Crude Oil Market Continues to Look Bullish

By:
Christopher Lewis
Published: Feb 28, 2024, 15:54 GMT+00:00

Crude oil market looks bullish across the board right now, and it looks as if we are getting dangerously close to some type of significant breakout. At this point, I remain very bullish, yet somewhat cautious with my position sizing.

In this article:

WTI Crude Oil Technical Analysis

You can see that we initially pulled back during the trading session on Wednesday only to show signs of strength again. I think at this point, it has become somewhat obvious that we will eventually break out to the upside with the $80 level in WTI being a major area of resistance.

Because of this, I am simply waiting on a daily close above there that I can take advantage of and take a shot at a longer term buy and hold. The buy and hold position of course could open up a move all the way to the $85 level, possibly even higher than that given enough time. I think at this point in time you have to continue to look at this through the prism of a buy on the dip type of situation. And therefore, I like the idea of taking advantage of each dip as we come along and we are above the 200 day EMA as well, so that also helps.

Brent Crude Oil Technical Analysis

Brent is very much the same situation, although we’ve got a little further to go before I think we’re completely clear of the resistance, but we are most certainly right at the top of the range and I think this is a market that continues to be one that you have to watch just as well. I think short-term pullbacks again continue to offer value and that will be the case as we head into the summer driving season and of course demand picks up.

No interest in shorting crude oil whatsoever. And I think that will continue to be the case It is just simply a buy on the dip and continue to take advantage of value each and every time it shows itself. Ultimately, I think crude oil is going to be one of the big markets this summer, but right now we are just in the beginning of building up the necessary momentum to make it really take off like I suspect it’s going to.

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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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