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Crude Oil Weekly Price Forecast – Crude Oil Markets Building a Base

By:
Christopher Lewis
Published: Jan 12, 2024, 14:34 UTC

Crude oil markets have been building a bit of a base for a while, and this past week was just more of the same.

Oil Pump charts, FX Empire

In this article:

Crude Oil Prices Forecast Video for 15-01-2024

WTI Crude Oil Weekly Technical Analysis

It’s been a productive week for the crude oil markets as we have bounced a bit from a significant support level. The market now looks as if it is threatening to break out, but I also see a lot of noise just above. The West Texas Intermediate crude oil market is currently hanging around the 200-week EMA just underneath the $75 level.

If we can break above there, then it opens up the possibility of a move toward the $77.50 level, possibly even the $80 level. It’s worth noting that the $68 level underneath is significant support, and therefore it does suggest that we’re in the midst of a bottoming pattern.

Brent Crude Oil Technical Analysis

Brent looks very much the same, hanging around just below the crucial $80.50 level. If we can break that, then we could go looking to the $86 level. Short-term pullbacks continue to get bought into as we are so close to a major floor in the market, in this case around $72. Ultimately, I am bullish on oil, not drastically so, just that I think it is so well supported that you have to look at it through the prism, more or less of shorter term trading, but longer term trading does suggest that we could go as high as $95. We basically just need something to kick it off at this point.

Regardless, you need to be cautious with your position sizing but at this point in time I believe that the market has found its bottom and therefore it’s more or less going to be a longer-term process to get things moving. If and when we do though, we could see the market really start to take off.

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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