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Crude Oil Price Outlook – Crude Strong but Near Top of Range
Updated: Dec 16, 2024, 15:55 GMT+00:00
The crude oil market continues to see a lot of noisy behavior, as we continue to see a lot of noisy behavior. The oil market is one that I believe will be stronger next year, but this time of year makes it likely that we will just hang about.
WTI Crude Oil Technical Analysis
The West Texas Intermediate crude oil market has shown itself to be somewhat sideways during the early hours on Monday as we are hanging around at the top of the overall consolidation range. All things being equal, this is a market that I think continues to look at the $72.50 level above as a potential barrier. If we can break above that level, then we will take on the 200-day EMA next. All of this being said, I do believe that crude oil will rally early next year.
However, I don’t necessarily think that you throw a ton of money into the market right now. Short-term dips could be bought into, I suppose. If you are a short-term trader, the relative strength index is neutral, but the stochastic oscillator is a little overbought. So, a lot of this is going to come down to, are we range-bound or are we not? I suspect we’re probably still range-bound for a little bit. So, buying on the dips will be how I play this.
Brent Crude Oil Technical Analysis
Brent market’s very much the same. It’s a little bit more compressed. You can see here’s an example of the RSI. On the chart, it is very much in the middle of the range. But really at this point, you have to assume that we are still range bound and we are getting to the overbought area. As we head to the end of the year, it does make a certain amount of sense that maybe, just maybe, we are going to kill some time before traders come back to work in January, so I’m erring on the side of caution and thinking sideways, but I’m more focused on the upside.
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About the Author
Christopher Lewisauthor
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.
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