Crude Oil Price Outlook – Crude Continues to See Selling on Tuesday

WTI Crude Oil Technical Analysis

The light sweet crude oil market has fallen quite a bit of distance during the open here on Tuesday, and it looks to me like we are going to continue to see a lot of fading of rallies every time we do try to rally and reach the $60 level. All things being equal, keep in mind that the 50-day EMA is sitting above the $60 level. So this is a market that I think continues to see a major downtrend come into the picture and put pressure on here as well. The $55 level is an area that I think a lot of people will be watching as a potential floor.

Brent Technical Analysis

Brent markets also fell during the trading session. And again, we have a little bit of a downtrend line, basically following the 50-day EMA. I do think there is a ceiling at the $65 level as well. All things being equal, this remains a fade-the-rally type of market. In fact, I put orders overnight to short anything near 65 here. We did not get anywhere near there, so I am not in the market, but I would have been perfectly comfortable fading because, quite frankly, the supply continues to overwhelm demand, and we have all but extinguished that movement of the market jumping up in the air because of sanctions on Russia.

After all, Russia’s had sanctions on its oil in one form or another for at least 10 years that I can think of. So really, that does not even matter. I think we are going to test the lows here at $60 eventually. And I think the best play is for short-term traders to fade short-term rallies to show signs of exhaustion. I do not know that we will get any clean moves anytime soon. Furthermore, Thursday is Thanksgiving in the United States, so that, of course, has a major influence on the futures markets, so keep that in mind as well.

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