Crude Oil Price Forecast – Crude Testing The Low End of The Range

Christopher Lewis
Published: May 22, 2024, 13:54 GMT+00:00

The crude oil market has fallen a bit in the overnight trading session, as the crude oil build was higher than expected in the United States.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market fell towards the $77.50 level, an area that has been important multiple times in the past. At this point, I think you’ve got a situation where the market is trying to do everything it can to find its footing. And despite the fact that there was a surprise build in the announcement during the previous session, there will come a point where eventually traders start to look at the time of year and the cyclicality plus the geopolitical issues that are currently a major problem right now. When you look at the chart you can see that we are hanging around the 50% Fibonacci retracement from the big move from the low in the end of 2023. So really at this point I do think that we will continue to consolidate but if we can clear the $80 level, the WTI market may truly take off.

Brent Crude Oil Technical Analysis

Brent looks very much the same as we dipped below $82, but now it looks as if we are trying to turn things around. We are near the 50% Fibonacci retracement level, and therefore I think a certain number of technical traders will be interested in trying to play this market. Now, I do think that the $84.50 level above is a major resistance barrier. And if we could get above there, we really could take off. But in the meantime, I just think we’re going to try to bounce towards that overall indicator. After all, this is a market that is going to continue to look at this area as a major support region. And therefore, I think a lot of value hunters are starting to come back into the market.

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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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