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Crude Oil Price Outlook – Crude Oil Continues to See Choppiness
Published: Jan 17, 2025, 14:26 GMT+00:00
The crude oil market are a bit lower in the early hours of Friday, as we are a bit overextended at the moment in both the CL and the BZ contracts. However, I am still bullish of these markets and believe that the dips should continue to be bought.
In this article:
WTI Crude Oil Technical Analysis
The Light Sweet Crude, or West Texas Intermediate Crude Oil Market has initially tried to rally during the Friday session, but it continues to see a little bit of noise around the $78.50 level. Quite frankly, this is a market that I think continues to see a lot of upward pressure, but a pullback is possible. I have two base case scenarios right now, one of which is that we fall a bit towards the $75 level where we’ll find more buyers.
The second one, of course, is that we just simply go sideways and work off some of this excess momentum. Either way, I have no interest in shorting the contract, and I do think that it is probably only a matter of time before we break out a bit higher. I expect choppy volatility, but I’m more or less in the camp of those willing to buy the dips for short-term opportunities.
Brent Crude Oil Technical Analysis
Brent markets look very much the same, although a little bit sloppier. The $82 level is a significant barrier that must be watched. The market breaking down below the $79.75 level could open up and move all the way down to $78, where I’d be really interested in buying some type of bounce. On the other hand, if we break out to the upside, we could go as high as $88 before it’s all said and done. We are a little overdone, but it is worth noting that the volume has picked up quite significantly in both of these contracts over the last week or so, showing real interest in crude oil. I am bullish. I just don’t want to pay at extremely high levels when pullbacks are offered.
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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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