Crude Oil Price Outlook – Crude Oil Attempting to Bounce

WTI/CL Technical Analysis

The crude oil markets have shown themselves to be somewhat noisy at this point, as we initially fell in the light sweet crude oil market during the early part of the Friday session. And now the question is, can we break back above the $65 level? If we can, then it gives us an opportunity to get to the 50 day EMA at $66.14, and then possibly even the 200 day EMA at $68.

Donald Trump continues to threaten Russian oil sanctions. We’ll have to wait and see whether or not that plays out as the session on Friday is actually the deadline for a ceasefire in Ukraine, according to him. So, this is causing some noise in oil, but I would also point out we’re approaching the previous consolidation area, and it does make a certain amount of sense that we could see a technical balance regardless.

Brent Technical Analysis

Brent markets look very much the same, as we are trying to recapture the $67 level. If we can break above the $67 level, then it’s likely that the market could go looking to the $68 level, followed by the 50 day EMA. Breaking that opens up a move to $71. Again, we’re pressing an area that previously had been very noisy. We’re basically sitting on top of consolidation. And with that being the case, it makes a certain amount of sense that we would bounce regardless.

I do think given enough time, this is a market where we’ll have to make a bigger decision. And we are in the midst of something that you could look at as a potential double bottom. But if we break down below the lows of the day, that opens up quite a bit of negativity as we fall right back into that same range we were in back in April.

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