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Crude Oil Price Outlook – Crude Looks for Momentum in Base Building
Published: Dec 23, 2024, 16:38 GMT+00:00
The crude oil market continues to see a lot of sideways action, but at this point on the calendar, it makes a lot of sense that we are simply waiting for the holidays to get out of the way.
In this article:
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil Market did initially try to rally during the trading session on Monday, but has given back some of the gains to show a little bit of hesitation, but that’s not a huge surprise. Quite frankly, this is a market that really hasn’t been doing much for a while and therefore, I think you have to look at this through the prism of building a base maybe or just killing time. take your pick.
With that, I am looking at this through the prism of whether or not we can build up enough momentum to finally go higher. But I think over the next couple of days, and perhaps even into the new year, it’s going to be difficult. If we can clear the $72.50 level, and I think we will eventually, the market goes much higher, perhaps looking towards the $78 level. Short term pullbacks continue to see plenty of support, especially near the $67 level and I think that support level extends all the way down to $65. So pretty impressive.
Brent Crude Oil Technical Analysis
Over in the Brent market, it’s very much the same situation. Brent looks like it’s got support down at 70, and therefore we need to pay close attention to that as well. All things being equal, this is a market that I think you look at through the prism of buying on the dips, as buying on the dips offers value here. But again, I think you probably have a hard time getting overly aggressive. This time of year, it’s more or less about building a base for a move to the upside, but we are sitting right at a major support level from several years in both grades, so I think we’re in the process of trying to bottom out.
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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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