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Crude Oil Price Forecast – Crude Oil Markets Continue to Find Buyers on Dips

By:
Christopher Lewis
Published: Feb 29, 2024, 14:46 UTC

The crude oil market continues to see a lot of buy on the dip” behavior, therefore I think it comes down to the idea that I had we are heading into a cyclical bullish time of year, and a lot of people will have to pay close attention.

In this article:

WTI Crude Oil Technical Analysis

As you can see, the crude oil market has been very resilient every time we get a little close to the top of this massive range. That being said, this is a market that I think we’ll continue to see the $80 level as a significant barrier that, if we can break above it, we can really start to take off. The market breaking above there then opens up the possibility of a move to the $88 level. Short-term pullbacks at this point will continue to see buyers in the 200-day EMA and the 50-day EMA indicators underneath as we are forming a huge, rounded bottom.

Brent Crude Oil Technical Analysis

Brent looks very much the same as we’re hanging around the 200 day EMA. The $84.50 level of course will open up the possibility of a bigger move over here and at this point you are still jumping in and buying dips in Brent also. Tensions in the Middle East will continue to drive oil prices higher given enough time. And of course, demand is supposed to be picking up this time of year, typically from a cyclical standpoint. The Federal Reserve is going to continue to be a player as well, as it’s possible that they may cut rates rather aggressively, and if they do, that should spur industry, which of course should drive up demand for crude oil also.

Either way, I have no interest in shorting this market, and therefore, I’m either going to wait for a breakout or buy short-term dips in a back-and-forth manner. I have zero interest in trying to short this market. Because of this, I think you have a situation where if you are patient, you will get paid quite nicely over the longer term. That being said, you also have to be patient, so keep that in mind as well. Regardless, I do think that crude oil is probably going to be one of the stronger trades of the year given enough time.

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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