Crude Oil Price Forecast – Crude Oil Markets Give up Momentum

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Published: Jan 8, 2024, 14:35 GMT+00:00

Crude oil markets fell significantly during the trading session on Monday to kick off the week on the wrong foot. Ultimately, I think you get a situation where crude has a lot of crosswinds that will be difficult to deal with.

In this article:

WTI Oil

-0.54%

Brent Oil

-0.89%

Crude Oil Prices Forecast Video for 09-01-2024

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market has fallen rather hard during the trading session on Monday as traders came back to work from the weekend. This just signifies that we are still very much in a range in the crude oil market. With the $75 level above being significant resistance, and the $68 level underneath being significant support. Because of this, I think you are probably going to have to sit this market out for the moment, as we are essentially right in the middle of the two major levels. In other words, we are achieving fair value. Once we get a little closer to the $68 level, I would be a buyer on some type of a bounce, but I wouldn’t necessarily have a huge position on.

On the other hand, if we can break above $75 on a daily close, I would be willing to buy a small position there as well. I don’t really have any interest in shorting oil at the moment. We are far too low at this point.

Brent Crude Oil Technical Analysis

Brent looks very much the same as well. And much like the WTI grade, we are right in the middle of two major areas on the longer term chart. With this being said, I think you’ve got a situation where market participants will continue to see the $80.50 level offer resistance with the $72 level underneath offering support. As we’re right in the middle of this as well, I think this is also a market that you have to somewhat sit on the sidelines in the meantime. It’s essentially a 50-50 proposition at this point as to which direction we go in the short term.

However, the closer we get to $72, the more likely I am to step in and build up a small crude oil position. I would also be a buyer above the $81 level, but again, I would be cautious with my position sizing as there are a lot of geopolitical macroeconomic and just noisy issues when it comes to pricing oil at the moment.

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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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