Crude Oil Price Analysis – Crude Continues to Find Buyers on Dips

WTI/CL Technical Analysis

The light sweet crude oil market has shown that there is plenty of support underneath near the $60 level and it looks like that is going to continue to be the case. With this, I believe that the market is going to try to get to the 50-day EMA, possibly the $65 level. If we break down below the $60 level, then it opens up the possibility of a move down to $56.

Brent Technical Analysis

The Brent market is very bullish looking during the day and does suggest that we go looking to the 50 day EMA. After that, we have the $68 level as a potential target. If we break down below the $63.50 level, then it’s possible that we go down to the $60 level. Keep in mind that Brent needs a little bit more in the way of economic activity to really get going higher. And I do think that ultimately, we probably see the market do exactly that, we are also in the possible range of trying to form some type of inverted head and shoulders.

Ultimately, I do like this as a market that will probably continue to be buy on the dip, but it is going to be very noisy as there are a lot of concerns about oversupply coming out of OPEC. And then of course, the lack of demand, perhaps, coming out of places like Europe and the United States down the road as well.

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