Crude Oil Price Outlook – Crude Continues to Consolidate

WTI/CL Technical Analysis

The light sweet crude oil market has gone back and forth during the course of the trading session here on Friday as we try to sort out where to go next? All things being equal, this is a market that I think is going to find plenty of support near $60. And therefore, I am looking for a bounce, a little bit of a move to the upside in order to take advantage of, as it looks like we are trying to base. And of course, we recently formed a bit of a double bottom.

Brent Technical Analysis

Brent markets, of course, look very much the same as we are just hanging around the $65 level. The market starts to rally from here and then I will be following it. If we can break above the 50 day EMA, then I believe Brent will take off to the upside quite nicely, opening up the possibility of $70 being targeted. We recently formed a double bottom, that of course is a well-known technical pattern and could be at the bottom of the market. We’ll just have to wait and see.

But as things stand right now, I still look to the upside because, quite frankly, on longer term charts, we are in an area that’s been well supported multiple times. If we can break above $70, then I think Brent really starts to take off to the upside. And at that point, I think you have more momentum in the market. You have more FOMO traders jumping in and trying to take advantage of each and every dip. I have no interest in shorting oil anymore. That trade is a little long in the tooth.

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