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Crude Oil Price Forecast – Crude Oil Launches on Friday

By:
Christopher Lewis
Published: Jan 10, 2025, 16:57 GMT+00:00

The crude oil market has launched higher on Friday as the jobs number in the United States shows just how hot the US economy is running. At this point in time, the markets are pulling back a little from the resistance that they tested. However, it got there really fast, so a “buy the dips” move seems likely.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market launched higher during the session on Friday after the jobs report came out hotter than anticipated. And it now looks like the US economy is certainly going to need plenty of petroleum. So, with that being the case, it makes sense that the West Texas intermediate crude oil market ran all the way to the crucial $78 level, an area that had been significant resistance and now has been tested again, but we probably got there a little too quickly to get the follow through.

At this point, it becomes a very obvious buy on the dip type of scenario. And I have been saying for a while now that I thought oil was going to turn things around early 2025, and it’s starting to do so. It’s not until we break back down below the $72.50 level that I would remotely consider this a failed breakout. It’s a noisy breakout. And I do think that you could get a little bit of a short-term drop in order to pick up cheaper oil, but that’s what you’re looking for.

Brent Crude Oil Technical Analysis

Brent same thing, Brent has broken above the $80 level at one point during the session. Now it’s pulling back just a little bit, which makes a certain amount of sense because we got there in record time it seems. And now it’s very much the same scenario where you are looking for pullbacks that you can take advantage of in order to buy cheap crude oil. The 200-day EMA sits underneath it and should continue to offer support as well. So that is worth paying close attention to and it’s really not until we break down below the $76 level that I’d be worried about the Brent market itself.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

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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