Crude Oil Price Outlook – Crude Oil Continues to Attempt a Break Higher

WTI/CL Technical Analysis

The light sweet crude oil market has pulled back just a bit during the early hours on Wednesday as we continue to contend with the crucial 50 day EMA. The 50 day EMA, of course, is a widely followed indicator that a lot of people will be paying close attention to. With this being the case, I think you’ve got a situation where traders are susceptible to perhaps taking profit pretty quickly. But if we were to break above the $65 level, this allows the light sweet crude oil market to simply take off to the upside from what I suspect. If that happens, then we could go looking to the $69 level. Short-term pullbacks, I think, are going to end up being buying opportunities.

Brent Technical Analysis

The Brent market looks very much the same as we are sitting right here at the 50 day EMA as well. Ultimately, this is a market that’s going to eventually try to get to the $70 level. Short-term pullbacks I think do make quite a bit of sense. I think they offer value, and I think it’s something that most people will be willing to take advantage of based on the idea of value.

With trade talks going so much better all of a sudden, this means that demand for crude oil should pick up and therefore this oversold market looks as if it’s in the process of trying to form a bottoming pattern in the form of a double bottom at a major support level. That’s true in Brent and light sweet crude. So, I think oil eventually is going to turn things around.

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