Oil & Gas - Energy - Commodities - Resources (OILBRENT)

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Crude Oil Continues to Bounce
By: Christopher Lewis | February 16, 2024

• Crude oil markets continue to see buyers on dips as the resiliency and the stabilization of the market becomes much more apparent.

WTI Crude Oil Weekly Technical Analysis

As you can see, theWTI market has shown itself to be rather resilient over the last couple of weeks as we are now testing the 50-week EMA. I think given enough time, we are going to break above there and then go looking to the $80 level. If we can clear $80, then that would be a very positive sign, perhaps allowing the market to go much higher. This remains a buy on the dips market, as Middle Eastern tensions alone could cause market basically participants to jump in and try to cover and protect themselves.

Brent Crude Oil Weekly Technical Analysis

Brent is very much in the same situation right now with the $80 level offering support. If we can break above the top of the last couple of candlesticks and by extension the 50-week EMA, it’s likely that the market will go looking to the $90 level and then eventually the $95 level. Either way, I think that every time oil dips you have to look at it as a potential gift that you can buy into. The crude oil market has been forming a basing pattern for a while and I think we’re starting to see it play itself out as we go higher heading into the crucial summer driving season.

Keep in mind that geopolitical concerns in the Middle East, central banks loosening monetary policy, and the idea that perhaps there is going to be an engineered “soft landing” in the United States has oil traders bullish at the moment, not to mention the fact that we had recently tested a major low from a technical analysis standpoint.

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