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Crude Oil Price Forecast – Crude Oil Continues to Look For Buyers
Published: Jun 10, 2024, 13:55 GMT+00:00
The crude oil market rallied slightly in the early hours on Monday, as the market digests a lot of oversold conditions, and of course the attack on shipping over the weekend.
In this article:
WTI Crude Oil Technical Analysis
Crude oil has rallied slightly on the 4-hour chart in the West Texas Intermediate Grade, and it looks like we are trying to continue the upward trajectory. Quite frankly, this is a market that had gotten far too oversold and now it looks like we are starting to come to grips with the idea of perhaps the worries about the economy were overdone because quite frankly, in the United States, we had a larger than anticipated jobs number that has people thinking that perhaps the demand for crude oil will continue to be strong in America.
That being said, we also have to worry about a lot of geopolitical concerns, and that could drive oil higher as well. There was an attack in the seas over the weekend so again, we’ll just have to see how this plays out. But clearly, this is an oversold market. I think at this point in time, short term pullbacks continue to be buying opportunities. But you probably want to be somewhat rapid to take your profit.
Brent Crude Oil Technical Analysis
The Brent four-hour chart looks pretty much the same as you would expect with the $80 level offer a little bit of resistance, but if we can clear that, then it’s possible we could get to the $82 level. Short-term pullbacks continue to be buying opportunities, and it is worth noting that both Brent and the West Texas Intermediate crude oil grades had hit a very low level that historically has been fairly well supported. So I think value hunters are coming in to pick up the market. With that being said, I like the idea of buying this dip and I have no interest whatsoever in shorting.
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.
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