Crude Oil Price Forecast – Crude Pulls Back

Christopher Lewis
Published: Mar 20, 2024, 13:50 GMT+00:00

Crude continues to be somewhat noisy, as we are pulling back in the early hours on Wednesday. This market is likely to continue to see a lot of upward pressure over the long term.

In this article:

WTI Crude Oil Technical Analysis

The crude oil market has pulled back just a bit during the trading session on Wednesday, but quite frankly, I think we are a little overextended, and I think we also have to pay close attention to the fact that Wednesday is Federal Reserve Day. So, in the WTI grade of crude oil, I’m paying close attention to $80. It’s an area that needs to be held.

We’re nowhere near that, so I’m looking for an opportunity to get long yet again. I do think eventually we will go looking to the $85 level. It does make a certain amount of sense considering that we are in that time of year. We are getting ready to get the golden cross, where the 50-day EMA breaks above the 200-day EMA, and longer-term traders tend to like that.

Brent Crude Oil Technical Analysis

It looks like it will have plenty of buyers underneath in the Brent market I am keeping an eye on the area right around the $84.50 level This is a zone of support that I think just waiting to happen and therefore I like the idea of finding value on a pullback that I can take advantage of. Longer term, I think this is a market that could go to $90, possibly higher than that. Quite frankly, it’s more likely than not we will go higher than that.

Right now we have geopolitical concerns and tensions in the Middle East, and I would say a supply issue in general. Also, the Americans have emptied the Strategic Petroleum Reserve, so there are a lot of reasons to think that people are going to be buying oil. If central banks do in fact cut rates, that spurs economic growth as well. So, at this point in time, it looks very much like a buy on the dip market.

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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