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Crude Oil Price Forecast – Crude Oil Pulls Back During Holiday Trading
Published: Jan 20, 2025, 14:48 GMT+00:00
The crude oil markets continue to be noisy, but at this point in time, the market also had to deal with the idea of there being less volume, and of course shorter hours in the futures markets.
In this article:
WTI Crude Oil Technical Analysis
The Light Sweet Crude or West Texas Intermediate crude oil market fell fairly significantly in the early hours of Monday, but keep in mind that it’s also Martin Luther King Jr. holiday. So, it does make a certain amount of sense that the markets might be sluggish because they are only open for part of the day and of course, a lot of volume is missing, especially in the United States. So, with that being said, a little bit of a pullback makes a certain amount of sense.
And it’s possible that we could see this market drop towards the 200 day EMA right around the $74 level. The 50 day EMA is racing towards that area as well. So, it does suggest that we could get a little bit of a golden cross, but really at this point in time, I think we probably bounce before we get anywhere near any of that. After all, inflation is picking up and we are looking at more demand coming from around the world, but we may have gotten a bit ahead of ourselves.
Brent Crude Oil Technical Analysis
Brent markets look very much the same as they are hanging around and looking to perhaps break down below the $80 level. With that being the case, the market reaching down to the 200 day EMA is a very real possibility near the $78 level. All things being equal, this is a market that I think you continue to be a bit of a buyer, finding value on these dips as it looks like we are trying to do everything we can to pick up the pressure to break above the $82 level. I think we will eventually, but it also would not surprise me at all if we needed to pull back a little bit in order to find some type of traction. Ultimately, I have no interest in shorting crude oil at this point, and that goes for both the CL and BZ contracts.
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About the Author
Christopher Lewisauthor
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.
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