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

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Crude Oil Market Continues to Build Its Base
By: Christopher Lewis | February 23, 2024

Crude markets have pulled back just a bit, but it looks like we are trying to find plenty of support underneath to turn things around.

WTI Crude Oil Weekly Technical Analysis

Taking a look at the crude oil market on the weekly timeframe, you can see that the WTI crude oil market has pulled back just a bit from the 50 week EMA and the $80 level as well. Ultimately, this is a market that continues to build upon a previous consolidation range, and I think a lot of people will be looking at it through that prism.

The 200 week EMA sits right in the middle of this range that extends from $80 on the top to $68 on the bottom. And therefore, I think we’re stuck here, but we are building up a rounded bottom. I do think that given enough time, just the seasonality of it all, we’ll send this market higher.

Brent Crude Oil Weekly Technical Analysis

Brent is very much the same scenario right now, I believe that 84.50 is a major barrier above, somewhere between there and 84, I should say. And now I think short-term pull backs will continue to attract attention, with $72 level underneath being the massive floor in the market. Again, this comes down to the same common themes, supplies dropping a bit, it’s becoming summertime, and therefore people will be looking to drive more and fly more.

And then of course, central banks around the world loosening monetary policy will drive up demand for energy, at least that’s the hope. So, with all that being said, if we can break above our barriers in these markets, in the case of Brent, we could go to $95 as an example. I am bullish in these markets, I like buying dips, but longer term traders, you’re probably going to have to be a little bit patient.

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