Crude Oil Price Forecast – Crude Pulls Back Slightly on Thursday

Crude Oil Prices Forecast Video for 29-12-2023

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market has initially tried to rally on Tuesday, but it looks like we are selling off again. The $75 level seems to be a major resistance barrier, and at this point we have to try to determine whether or not the bounce from the $68 level was simply profit-taking or if it is the beginning of something bigger. The reason I say this is that the $68 level is a major support level going back multiple years and therefore a bounce from there is something that catches my attention. Furthermore, when you get some type of bounce like this at a major level, a lot of times it is going to be a bit of a bottoming process, meaning that you continue to see buyers on dips.

That might be what’s happening here. And therefore, I’m not ready to start shorting oil again. There are a lot of reasons to worry about the price of oil, not the least of which would be whether or not we are heading into a global recession. But I do think that somewhere around $72, there might be some interest and more buying coming down the road.

Brent Crude Oil Technical Analysis

Brent markets have fallen a bit as well, pulling back from the crucial $80 level. But I also recognize that the $77 level underneath could be support. I do like buying small positions in both grades of oil at the moment, as it can help build up a position for next year. The idea, of course, being that central banks, specifically the Federal Reserve, are going to start cutting rates, and that should pump the economy up, and that, of course, will drive more demand for oil.

There is a supply issue at the moment though, so that’s something worth paying attention to. But we are really closer to the bottom than we are at the top. So, I started to look for supportive signs and short-term balances to get involved. Either way, be cautious with your position sizing this time of year, as liquidity can be a major issue at times.

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