Affiliate Disclosure
Affiliate Disclosure adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Crude Oil Forecast: WTI and Brent Crude Oil Face Resistance

The possibility of higher prices remains if these levels are breached, with potential targets at $75 for WTI and $80 for Brent.

  • The West Texas Intermediate (WTI) and Brent crude oil markets experienced a slight pullback in the recent trading session, testing the top of their respective triangles after breaking out.
  • As market participants evaluate the situation, the focus now shifts to the possibility of buyers returning and exerting buying pressure.
  • Technical indicators, such as the 50-Day Exponential Moving Average, play a crucial role in gauging market sentiment.

Testing Triangle Breakouts

For WTI crude oil, a potential upward momentum may drive prices higher if the 50-Day EMA is surpassed. In such a scenario, the market could target the $75 level. Beyond that, the 200-Day EMA, situated just below the $80 level, may act as the next significant resistance. On the flip side, a reversal from current levels could prompt a search for support around the $70 level, given its psychological importance.

WTI Crude Oil chart

Similarly, Brent crude oil experienced a pullback, testing the upper boundary of its triangle. The market's attention is drawn to the 50-Day EMA, a critical zone likely to influence price action. A break above this level could potentially lead to the breach of the $80 level. If that occurs, the market might seek the 200-Day EMA, located just below the $85 level, as the subsequent resistance.

Despite these technical factors, the oil market faces challenges due to the likelihood of declining demand in the face of an impending economic downturn. As concerns about a potential recession loom, oil demand could diminish. However, it is worth noting that the market could find support around the $70 level while encountering resistance near $85. These levels may delineate the trading range for the summer season.

Historically, oil markets tend to establish a range during the summer months, and this year is unlikely to deviate from that pattern. As we move forward, the summer season is expected to shape the overall trajectory of oil prices.

In Conclusion

At the end of the day, the WTI and Brent crude oil markets experienced a temporary pullback following the breakout from their respective triangles. The focus now lies on the 50-Day EMAs as significant Forex technical indicators. The possibility of higher prices remains if these levels are breached, with potential targets at $75 for WTI and $80 for Brent. Conversely, support can be anticipated at around $70, while resistance near $85 is expected to define the summer trading range. As the oil market grapples with the prospects of declining demand amid an uncertain economic climate, the summer months will play a crucial role in shaping the future of oil prices.

Brent Crude Oil chart

Ready to trade WTI Crude Oil FX? We’ve shortlisted the best Forex Oil trading brokers in the industry for you.

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.


Most Visited Forex Broker Reviews