Crude Oil Price Forecast – Crude Oil Continues to Bounce Around

Crude Oil Prices Forecast Video for 19-01-2024

WTI Crude Oil Technical Analysis

When you look at the WTI market, you can see that we initially tried to rally during the early hours on Thursday, but then gave up those gains again. We continue to consolidate in what I think is some type of compression position where we will spring out of it quite violently, but right now we’re just kind of drifting back and forth looking for a catalyst to get moving. As things stand right now, I believe that the $75 level will continue to be a major overhang while the $68 level underneath is major support. Notice that we are getting tighter and tighter over the last couple of weeks so I do think that we are getting relatively close to some type of change in attitude.

Brent Crude Oil Technical Analysis

The Brent market’s very much in the same situation as the WTI market, with $80.50 above offering resistance. The 50-day EMA also offers resistance, and underneath we have support at the $72 level. Keep in mind that crude oil has to deal with attacks in the Red Sea and tensions in the Middle East, but at the same time we have almost four million barrels worth of spare capacity produced every day globally, which is not conducive to higher oil. In other words, everything is pressuring everything else.

This is a market that will make an explosive move sooner or later, but right now, I think overall, you want to be a buyer of dips for short-term trades. I’m not looking for anything big, I’m just talking about short-term trades that last less than 24 hours. I also would keep the position size reasonable because in this type of environment, if we do finally make a move, it could be quite drastic. And the last thing you want to do is be on the wrong side of something like that. When the oil market suddenly makes up its mind, it can be quite violent, so please keep that in mind as you position in the market. As things stand right now, it does look like we are more likely to find buyers than sellers over the longer term, but anything is possible, and you must keep that in the back of your mind.

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