Crude Oil Price Forecast – Crude is Trying to Fight Back

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Published: Sep 6, 2024, 14:36 GMT+00:00

In the early hours of Friday, we saw crude oil try to recover from the relentless selling pressure. At this point in time, we could be looking at a signal that things are about to get worse from an economic standpoint.

WTI Crude Oil Technical Analysis

The crude oil market has bounced in the West Texas Intermediate grade from the crucial $69 level in the early hours on Friday, but all things being equal, this is a market that I think continues to see a lot of volatility, but if we rally from here, it’s likely that we could go looking to the $71.50 level. The $71.50 level is an area that previously had been a significant support level, and it now should have a certain amount of resistance above.

If we can clear that area, then obviously that would be very bullish. But I think in the short term, it’s likely that we will see more of a fade, the rally type of situation. If we were to break down below the $68.50 level, that’s a major support level on longer term charts. And that could lead to something rather ugly.

Brent Crude Oil Technical Analysis

The Brent market has bounced a bit from the $72.50 level, and I think much like the West Texas Intermediate crude oil market, the Brent market is likely to continue to see a lot of negativity. A short-term rally at this point in time that runs into exhaustion is probably a selling opportunity. And keep in mind that both grades of crude oil right now seem to be pricing in an economic collapse of sorts. Maybe not a full collapse, but clearly a collapse in demand. And if that’s going to be the case, we have a lot of rocky times ahead of us. Oil could be like a canary in the coal mine.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Christopher Lewisauthor

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.