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WTI Crude Oil Forecast: Oil Languishing in the Same Range

If you are a range-bound trader, this market could be suitable for you.

WTI Crude Oil (US Oil)

On Wednesday's trading session, the West Texas Intermediate Crude Oil market experienced back and forth movement, remaining in the middle of a larger consolidation area. The market's significant resistance level is at $82, while the significant support level is at $72. At the moment, the market is hovering around the $76 level, placing it right in the middle of the broader range. As such, it is challenging to have a bullish outlook for the market, and traders should consider a short-term, range-bound situation.

However, if the market tests the outer ranges of the rectangle, traders can use those levels for support or resistance. Additionally, the 200-day Exponential Moving Average (EMA) is rapidly approaching the top of the consolidation area, which may add even more resistance in that region.

  • In summary, the West Texas Intermediate Crude Oil market remains in a consolidation area, with $82 acting as significant resistance and $72 as significant support.
  • Currently, the market is in the middle of the larger range at around $76, so it is challenging to have a strong bullish outlook.
  • However, traders can use the outer ranges of the rectangle for support or resistance and should consider the approaching 200-day EMA as a potential additional resistance level.

WTI Crude Oil Chart

Brent (UK Oil)

The Brent market experienced a slight dip during Wednesday's trading session and, similar to its US counterpart, remains in the middle of a consolidation area. In this market, the $90 level, which also includes the 200-day Exponential Moving Average (EMA), represents the higher end of the consolidation area. Meanwhile, the $77.50 level appears to offer support, and with the market hovering around $82.50, it is in a comparable situation to US crude oil.

It is crucial to keep a close eye on economic conditions as oil is an essential component of global commerce and economic growth. If we head into a significant recession, the demand for oil will likely continue to soften, ignoring the recent cut in production by OPEC of 2 million barrels per day. Consequently, it is likely that the Brent market will continue to experience lackluster, range-bound trading. However, if you are a range-bound trader, this market could be suitable for you. For swing traders like myself, it’s about waiting for some type of bigger move to take advantage of.

Brent Crude Oil Chart

Ready to trade WTI/USD? Here are the best Oil trading brokers to choose from.

Christopher Lewis
About Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.


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