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Crude Oil Price Forecast – Crude Oil Attempts to Recover on Wednesday
Published: Jun 5, 2024, 13:17 GMT+00:00
Crude oil bounced a bit in the early hours of Wednesday, as the market probably has got a little overdone to the downside. At this point, I would anticipate a bit of a bounce in a market that has oversold.
WTI Crude Oil Technical Analysis
The West Texas Intermediate crude oil market rallied a bit during the trading session in the early hours on Wednesday, as it looks like the oversold condition may see a little bit of correction.
At this point, it looks like the $73 level has offered West Texas Intermediate Crude Oil a bit of a floor, and we are oversold. I think at this point in time, it wouldn’t be surprising at all to see oil rally a couple of dollars before facing a significant barrier. Keep in mind that the market is driven by the idea that the economy is slowing down, and if that’s the case, there will be a lot less in the way of demand, at least that’s what traders are betting on. That being said, keep in mind that geopolitics will come into play eventually.
Brent Crude Oil Technical Analysis
Brent looks very much the same as well with the $77 level offering support, could very well bounce towards the $80 level. I would anticipate some resistance up there. And much like WTI, it’s going to have to worry about whether or not there’s enough demand. It’s going to have to worry about the value of the US dollar and of course, we’re going to have to keep an eye on geopolitical issues in the Middle East, which is most certainly a factor at this point. I think a short-term recovery makes a lot of sense in both grades of oil. As far as a longer-term trade is concerned, I don’t think we’re set up for it quite yet.
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About the Author
Christopher Lewisauthor
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.
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