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Crude Oil Price Forecast – Crude Oil Continues to See Support at Lows
Published: Aug 23, 2024, 16:32 GMT+00:00
The crude oil markets continue to recover, and at this point in time are probably going to be watching central bank statements more than anything else. With this, the market looks like it is going to continue to see a lot of volatility, but that’s normal for oil.
WTI Crude Oil Technical Analysis
The West Texas Intermediate crude oil market rallied in the early hours on Friday, as we continue to see a lot of noisy behavior, and the $71.50 level underneath seems to have offered a bit of a floor. If we can break higher from here, then the $75 level could be a significant resistance barrier.
If we break that, then I think we will go much higher, perhaps looking to the $78 level. In general, I think that short-term pull banks continue to offer buying opportunities at these, we also have limited upside. So short-term buying opportunities may present themselves, but I don’t think we’re going to see a massive move higher.
Brent Crude Oil Technical Analysis
The Brent market initially pulled back just a bit as well and then shot higher as we are near the $77.75 level. If we can break above the $78 level, then it’s likely that we could go looking at the $79. I think this sets up a short-term pullback and buying opportunity as we have seen during the day, but I don’t have any interest in shorting this market. I think we are far too low at the moment, and I believe it is probably only a matter of time before we go much higher. In general, this is a market that is very volatile, but if it looks like central banks are going to loosen, that might lift oil prices. Regardless, be cautious with your position size, as we are certainly going to be noisy going forward no matter what direction we go.
For a look at all of today’s economic events, check out our economic calendar.
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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