Crude Oil Price Outlook – Crude Oil Continues to Bounce Around

WTI/CL Technical Analysis

The light sweet crude oil market has shown itself to be pretty noisy during the trading session here on Thursday in the early hours, as we are hanging around the $62 level. The $62 level, of course, is an area that a lot of people see as support extending down to the $60 level. If we do rally from here, I think you’ve got a situation where we will eventually try to test the 50-day EMA, possibly even the $65 level. So, with that, I like the idea of fading short-term rallies that show signs of exhaustion, though, because we have been drifting lower for a while in this market as we are asking questions of demand worldwide.

Brent Technical Analysis

Brent looks very much the same as we are trying to rally, but we have the 50 day EMA offering resistance at the $67.16 level. The $69 level above is a bit of a ceiling. And at this point in time, I think we’re looking for signs of exhaustion that we can take advantage of and start fading. If we break above the $69 level, then we could really take off to the upside.

But right now, it looks as if the crude oil market continues to see quite a bit of downward pressure. I don’t necessarily think that we are going to break down in either grade of oil. I just think that short-term opportunities could present themselves to the downside in this grade, as well as most others out there.

For a look at all of today’s economic events, check out our economic calendar.