Crude Oil Price Forecast – Crude Oil Markets Pullback Again

Crude Oil Prices Forecast Video for 31-01-2024

WTI Crude Oil Technical Analysis

WTI crude oil has pulled back just a bit over the last 48 hours, with Tuesday being more negative. However, I do see a significant amount of support just below, especially at the $75 level, so I think at this point, it’s probably going to end up presenting some type of buying opportunity.

I would wait to see a little bit of a bounce, but at that point, I think we continue the buy-on-the-dip attitude and crude oil could very well go looking to reach the $80 level above. If we do break down below the $75 level, it would be a breach of the 50-day EMA as well, which of course would be a fairly negative sign. In that scenario, then I think we go looking for support underneath amid the massive choppy consolidation that we are breaking out of. Somewhere around $71, I think you would see quite a bit of value hunting.

Brent Crude Oil Technical Analysis

The Brent market, of course, is pulling back as well, looking at the $80.50 level as a potential support level, as it was previous resistance. The 50-day EMA sits just below there, and a lot of people will be paying attention to that indicator as well, as it is important.

Breaking down below there opens up the possibility of a move to $77 where I think you see more buyers coming in to pick up cheap oil. This is a market that I don’t have any interest in shorting, but I also recognize that the path higher is probably going to be fraught with a lot of volatility. In the Brent market, I think we could go looking to the $90 level over the next several months, and I feel the same way about the WTI crude oil market.

In other words, I think oil is going to get a bit of a boost, A) because it is so oversold, and B) because it is a market that will benefit from loosening monetary policy coming out of central banks around the world.

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