Crude Oil Price Forecast – Crude Oil Continues to Chop

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Published: Mar 11, 2024, 14:11 GMT+00:00

The cruel markets continue to be very choppy, as we continue to bang around a couple of major moving averages and trying to determine whether or not we have enough momentum to break out to the upside.

WTI Crude Oil Technical Analysis

The WTI Crude Oil Market is testing the 50 day EMA and hanging around the 200 day EMA during the Monday session, in an attempt to show signs of life. At this point, I do believe that the market remains a buy on the dip market and I think it’s probably only a matter of time before we break higher and go looking to the $80 level. The $80 level is a significant amount of resistance and therefore we do need to monitor that area very closely because if we break above there, I think that is going to be like a beach ball held underwater. Once it breaks the plane, it takes off to the upside.

Short-term pullbacks continue to be very problematic, but I don’t think it’s a big issue longer term. This is a market that features a lot of reasons to go higher, not the least of which would be the geopolitical tensions in the Middle East. But we also have the cyclical drive higher due to the fact that travelers, summertime, jets, cars, etcetera, all demand more energy. And if central banks around the world are going to cut rates rather rapidly, that will also have industry joining the fray.

Brent Crude Oil Technical Analysis

In UK oil or Brent oil, you can see it’s very much the same situation here. The resistance above I have marked is at $84.50, so if we can clear that, I think it would be a very good sign. On the other hand, in case we break down from here I think the $80 level would probably be a hard floor for the market, but in general, this is a market that I think will continue to chop back and forth with more of an upwards tilt. So on a day like today, I’m more apt to buy short-term dips. I don’t know that I would get married to the position, but if we can break above $84.50, then I think we can really start to take off over here as well. Don’t have any interest in shorting oil at the moment.

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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.