Crude Oil Price Forecast – Crude Oil Markets Slam Into Resistance

Crude Oil Prices Forecast Video for 15-01-2024

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market rallied a bit during the trading session again on Friday as we are slamming into major resistance. The question now is of course whether or not we can continue to see this upward trajectory. On a daily close above $75.50, I think at that point the question will be answered and traders will continue to try to drive oil toward the 200-day EMA.

This of course has a lot of things tied to it when it comes to economic conditions, as the world now has to wonder whether or not the global economy is going to slow down, and that means demand for crude oil could be somewhat weak. Furthermore, there is a huge oversupply of oil at the moment, but at the same time we have the attacks in the Red Sea that will make crude oil a little bit more difficult to get to the market.

So, with all that being said, it does make a certain amount of sense that we are somewhat confused. When you look at the longer term charts, the $68 level underneath is a major support level. And therefore, it makes a certain amount of sense that we might be in the midst of a bottoming process, leading it to be a buy on the dip market.

Brent Crude Oil Technical Analysis

Brent looks very much the same as it slammed into the crucial $80.50 level and then pulled back just a bit as we are challenging the 50-day EMA. On a daily close above $81, I would then be convinced that the market will eventually take off to the upside and surpass the 200-day EMA. Much like in the WTI grade, the Brent market has major support underneath, this time at the $72 level and while the support levels are a bit below where we are in both grades of crude oil, it does in a sense put a little bit of a floor into the market and makes it more of a buy on the dip scenario. That being said, it’s difficult to hang on to gains. So, I think you have more or less a back and forth type of market for range bound traders to take advantage of, at least until we get momentum shifting to the upside again.

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