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Crude Oil Price Outlook – Crude Oil Continues to Look For Bounce
Published: Jan 22, 2025, 15:00 GMT+00:00
The crude oil market was somewhat noisy in the early hours of the Wednesday session. At this point in time, traders are trying to sort out where the next wave of buying comes into play.
In this article:
WTI Crude Oil Technical Analysis
The light sweet crude oil market or West Texas Intermediate market has gone back and forth during the early hours on Wednesday as we continue to search for some type of bounce. This is a market that has pulled back from a pretty significant resistance barrier, but I do think that the uptrend will continue due to demand and of course, the idea of central banks around the world loosening monetary policy has people thinking the energy demand will pick up.
Ultimately, this is a market that will probably remain volatile because it had been so negative in the past. So, with that being said, I think you have to realize that these pullbacks should be thought of more or less as a potential buying opportunity. The 200 day EMA sits just below. So, I think that ends up being a short-term floor. If we can break above the $78.50 level, then I think we have another shot at breaking out to the upside.
Brent Crude Oil Technical Analysis
The Brent market looks very much the same as it’s hanging around the $79 level. The 200 day EMA sits near the $77.75 level and is offering a bit of a support. I think ultimately, if we do pull back from here, a little bit of a bounce opens up the possibility of a move to the $82 level. If we can break above $82, then I think Brent has much further to go. It really isn’t until we break back down below the $75.50 level that I’d be concerned about Brent. I think this breakout is the real deal, especially considering just how much volume we have had.
For a look at all of today’s economic events, check out our economic calendar.
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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