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Crude Oil Outlook – Crude Continues to See Sellers Above
Published: Dec 26, 2025, 14:49 GMT+00:00
The downtrend line and the 50-day EMA are both causing a bit of a barrier, and now that we have shown signs of exhaustion, I’m fine with shorting this.
WTI CRUDE OIL Technical Analysis
The US oil or WTI crude oil market initially tried to rally during early trading on Friday, but you can see that the market has rolled right back over. This will be limited, thin, shortened trading, but the only reason I would bring this up is that the downtrend line and the 50-day EMA are both causing a bit of a barrier. Now that we have shown signs of exhaustion, I’m fine with shorting this. I typically wouldn’t bring a potential setup to bear on the day after Christmas, but it just goes with the trend.
I do think, though, if we break above the $60 level, then there’s $2 worth of resistance above. It’s really not until we break above $62 that I get impressed to the upside. A lot of what we just saw, I believe, was probably short covering as far as the recovery is concerned.
Brent Technical Analysis
Brent markets look very much the same as you would expect, hanging around the 50-day EMA and the downtrend line. I do think that there is still a lot of overhang of resistance. I don’t like the day, but I do like the setup. Volume of course will be thin, the day will be short, but once we get back to work on Monday, it will move a bit more, and at this point, I think this is a simple problem with supply and demand. The supply is far too much for the demand, and of course, certain places around the world are not slowing down their production, so therefore, oil will continue to struggle.
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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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