Crude Oil Price Outlook – Crude Continues to Look Supported, Even on Holiday

WTI/CL Technical Analysis

The light, sweet crude oil market has initially tried to rally during thin Memorial Day trading on Monday, only to give back those gains. That being said, this is a market that I do think is still in the midst of trying to consolidate and find its footing, with the $60 level underneath offering a significant amount of support. If we turn around and rally from here, the 50 day EMA, which is currently near the $63.33 level, offers a little bit of resistance. If we can break above there, then we could go looking at the $65 level.

The $65 level, of course, is a large, round, psychologically significant figure and an area that previously has been important multiple times. If we were to turn around and break down below the $60 level, then it opens up the possibility of testing that double bottom at $55.

Brent Technical Analysis

The Brent market is very noisy as we initially did try to rally during the trading session on Monday but then gave back the gains as we continue to see a lot of noise right around the $65 level. If the $65 level gives way to buyers, then the 50 day EMA opens up the possibility of a move to the $66.60 level above there, then we could go looking to the $68 level, which was massive resistance.

If we break down below here, then the $63 level offers support, followed by $60. I think Brent is doing the same thing as the CL contract is. We are just trying to find the bottom and therefore it’s going to be noisy, but I still favor the upside as we go through the summer.

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