Crude Oil Price Forecast – Crude Oil Markets Have a Positive Friday

Crude Oil Prices Forecast Video for 08-01-2024

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market has rallied rather significantly to reach the top of the overall consolidation with the $75 level offering quite a significant barrier. With that being the case, I think we’ve got a situation where traders are going to look at that as very difficult barrier to overcome, but if we were to do so it could send market participants into a bit of a frenzy as breaking above the 50-day EMA would fire off more technical trading in that general vicinity, I would anticipate more people adding and then trying to drive the market towards the 200-day EMA above which is currently at roughly $79.

On the downside, I still see the $68 level as a major barrier and offering significant support. Because of this, I think you have to look at the market through the prism of buying on dips.

Brent Crude Oil Technical Analysis

Over here in the Brent market, very much the same situation. And therefore, I think you’ve got to look at this as a scenario where you get the opportunity to buy dips instead of trying to chase it all the way up here. The market will continue to be noisy and will continue to look at the $80.50 level as a major barrier, especially with the 50-day EMA.

The 50 day EMA of course attracts a lot of algorithmic traders and if we were to break above there, then much like in the other crude oil grade, we will see the market try to get to the 200 day EMA. In general, I think this is a situation where we have a lot of noise just above and it is going to take a lot of work to get above that scenario. If we do get above that scenario of resistance, then we really could go higher, but I still think you have to buy on the dip. There are a lot of concerns out there about oversupply, whether or not the economy is going to head into recession, and if the central banks, like the Federal Reserve, are going to start liquefying the economy. And then of course we have the Red Sea attacks that disrupts flow of oil.

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