Crude Weekly Price Forecast – Crude Oil Continues to Find Buyers Underneath

Christopher Lewis
Published: May 24, 2024, 16:05 GMT+00:00

It's worth noting that the summer travel season, of course, puts a lot of demand for petroleum.

In this article:

WTI Crude Oil Weekly Technical Analysis

The West Texas Intermediate crude oil market did fall rather significantly during the course of the trading week, but it looks like we’ve had a little bit of a washout. We are now in the midst of trying to recapture the 50% Fibonacci retracement level, and if we can break above there, the $78.50 level is a target that I think could offer a little bit of resistance.

But if we break above there, then it’s likely that the $80 level then gets targeted. Regardless, this is a scenario where a lot of people are going to try to find value here. I think that ultimately, we will, and the market looks as if it is trying to agree with me on this point as well. Given enough time, I think we go higher.

Brent Crude Oil Weekly Technical Analysis

The Brent market looks very similar, maybe a little bit more compact with its price action, but ultimately this is a market that I think given enough time, will do whatever it can to take off to the upside as well.

After all, this is a market that has seen a nice pullback but has held the 61.8% Fibonacci retracement level. So, with this, given enough time, if we can take out the $84.50 level, I do think that Brent rallies rather significantly at that point. Then we have the $90 level underneath. Also, we have the 61.8% Fibonacci retracement level that’s held in both markets, and a lot of technical traders will be paying close attention to it.

It’s worth noting that the summer travel season, of course, puts a lot of demand for petroleum. So, I think that’s going to be an issue as well as geopolitical concerns, which of course are front and center in the Middle East as per usual.

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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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