Crude Oil Price Outlook – Crude Continues to Build a Floor

WTI/CL Technical Analysis

The light sweet crude oil market has fallen just a bit during the early hours on Monday, but it does look like it’s finding buyers on the dip yet again, this is a market that I believe is in the process of trying to find its bottom and therefore, I would watch out if we got a little too close to the $60 level because I think that will be an area where traders pay close attention. Ultimately, this is a market that, given enough time, probably has to sort out quite a few questions about the directionality of the crude oil market.

But I believe that it is only a matter of time before we see traders looking at this through the prism of a potential longer term recovery and a break above the $65 level would almost certainly bring in a lot of buyers. At that point, I would anticipate that light sweet crude goes to the 200 day EMA. I am a buyer of short-term dips. I believe that we are in a massive bottoming pattern, especially when you look at how important the area right around $60 has been longer term.

Brent Technical Analysis

Brent markets look very much the same. I think we’ve got a situation where traders are trying to sort out what to do next, but all things being equal, I think the 50 day EMA being broken to the upside could be a big sign that we are going to go higher. And in that environment, I would almost certainly look to get long. Short-term pullbacks, I think are also buying opportunities here, but I also recognize that things will be very noisy, and therefore, you are going to have to be somewhat careful with your position sizing in this type of scenario.

Again, I think we are in the midst of trying to bottom in the Brent market as well, and if economic movement starts to pick up, especially with tariffs being perhaps at the back of people’s minds instead of the forefront, I do think Brent has a good shot at rallying here.

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