Crude Oil Price Outlook – Crude Continues to Settle at Inflection Point

WTI/CL Technical Analysis

The light sweet crude oil market has done very little during the trading session here on Friday, and that’s not a huge surprise considering how exhausted most traders must be. We shot straight up in the air and then pulled right back. We find ourselves in an area that previously was resistant, and it should offer support. There’s a lot of market memory here right around the $65 level. And I think that’s a bullish sign in the sense that we’re not breaking back into this previous consolidation area. If we can break above the last couple of days, then we could go looking at the 200 day EMA and a grind higher. I’m not looking for a sudden shot higher unless of course we get the Middle East flaring up again.

Brent Technical Analysis

Brent markets are actually a little bit negative during the day gaping lower, but we’re still somewhat stable here right around the $67 level. I think a rally from here makes a bit of sense, but if we do break down then we go looking at the $64 level. All things being equal, this is a market that is also exhausted. So, I think this makes a lot of sense.

With that being said, I still think you’re waiting to see an impulsive candlestick in one direction or the other to make a decision from this level, as it is so important. And perhaps you should also pay attention to all grades of crude oil because they all tend to move in the same overall direction. Right now, this is a very comfortable market, which means boring and sideways. If you’re a short-term scalper, this might be a place to be trading.

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