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Crude Oil Price Forecast – Crude Oil Markets Continue to Pullback

By:
Christopher Lewis
Published: Mar 5, 2024, 14:19 UTC

Crude oil markets continue to be very noisy, as we have pullback during the early hours on Tuesday.

In this article:

WTI Crude Oil Technical Analysis

You can see that crude oil continues to pull back, but I also recognize that the WTI market is hanging around the 200 day EMA and it is starting to see a little bit of support in this region. So with that being said, I think you have to look at this through the prism of a market that might be choppy but still bullish. I think that’s essentially how we’ve played the market for a while now and because of that, I don’t have any interest in shorting this market and I continue to recognize that if the WTI market Continues to rise and break above the $80 level then we could go much higher. I believe that is coming down the road sooner, rather than later.

Brent Crude Oil Technical Analysis

Brent of course has fallen a bit during the course of the trading session on Tuesday initially, but the 200 day EMA is coming into the picture to show signs of support. If we turn around and break above the top of the candlestick, then the $84.50 level is a resistance barrier that we have to wait for a close above and then we could really start to see a bit of a move.

In that environment, I think you’ve got a situation where the market could go all the way to the $90 level. After that, the $95 level is a viable target. We are heading into the time of year when oil demand picks up, so I think a lot of this makes sense, and therefore you have to look at it through that prism. I do not have any interest in trying to get too cute with this market. I just simply look for some type of opportunity to buy into what I think will be a bullish run this summer. Furthermore, supply has been a bit tight in the physical market and it’s only a matter of time before the futures market catches up.

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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