Crude Oil Price Forecast – Crude Oil Markets Continue to See Buyers on Dips

Crude Oil Prices Forecast Video for 23-01-2024

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market has initially fell during trading on Monday but has turned around to show signs of life. All things being equal, I think the market is going to continue to look at this for an upward pressure attempt to break above the $75 level. If we can break above the $75 level, then it’s likely that we could go looking to the 200 day EMA.

Underneath there is plenty of support near the $71 level and I don’t think that we are going to break down there anytime soon. If we do, then $68 would be the absolute floor. Breaking down below that area would of course be very negative. Nonetheless, I think we have been building a bit of a basing pattern here, and I do think that oil turns around eventually.

Brent Crude Oil Technical Analysis

Brent is the same thing as we initially pulled back but then turned around to show signs of life, perhaps trying to take out the 50-day EMA above. If we break above there, then the $80.50 level becomes the next resistance barrier that I think you have to deal with. In that environment, the market breaking above there then opens up the possibility of a move to the 200 day EMA. This, of course, is an indicator that will attract a lot of attention.

Regardless, I do think that oil is going to be a situation where we continue to buy the dips, and eventually break out to the upside but right now, we just don’t have the momentum. So therefore, you have to look at this again as a short term buying opportunity every time we drop, but you also have to get out rather quickly in order to take advantage of the gains and then just rinse and repeat. That will probably be the case for most of the year, so keep this in the back of your mind every time you look at the crude oil markets.

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