Crude Oil Price Outlook – Crude Oil Continues to Show Strength

WTI Crude Oil Technical Analysis

The crude oil markets rallied again during the course of the early hours on Monday as the West Texas Intermediate crude oil markets reached the $78.50 level, an area that has been somewhat resistant. When you look at the chart, it does make a certain amount of sense that the bullish traders continue to look at this W pattern as a signal that we might go higher.

Short-term pullbacks are most certainly possible in this area though, as we are a little overstretched, but I look at those pullbacks as buying opportunities and perhaps an attempt to build up the necessary inertia to break out. The 200-day EMA is sitting right around the $74 level and should offer significant support. And that assumes that we can get anywhere near there, which I don’t know that we will.

Brent Crude Oil Technical Analysis

Brent markets have pierced the $80 level and you’ll notice on the chart that I have a line at not only $80, but also $81, because there is a zone of resistance. At this point, we are stretching to try to get through the last vestiges of resistance. And I think a lot of damage has been done to the selling pressure there. But whether or not we’re ready to break out remains to be seen.

This looks like a market that probably pulls back, but that should offer a bit of value. The 200-day EMA is right around the $77.80 level. So, I think that could be a certain amount of dynamic support as well. I’d be looking to buy dips. I do think crude oil is going to be a big story in the first half of 2025, and there’s nothing on this chart that suggests I’m wrong so far.

For a look at all of today’s economic events, check out our economic calendar.