Crude Oil Price Outlook – Crude Oil Continues to Build a Base on Tuesday

WTI/CL Technical Analysis

Light sweet crude continues to go back and forth as it is trying to do everything it can to determine where we are going to go next. In general, this is a market that I think is likely to continue to be somewhat sideways as we are trying to determine whether or not the area between the $60 and $65 level holds.

This is a region that has been noisy multiple times in the past, and I think you have to look at this as a market that we’ll continue to try to build some type of bottom right here at the $60 level. The $65 level above is resistance. And if we can clear that, then we could see the next leg higher. The 50 day EMA is coming into the picture, so we’ll see if that offers a little bit of resistance. I do think we’re still in the process of forming some type of bottoming pattern.

Brent Technical Analysis

Brent markets look very much the same. And I think ultimately, they will move right along with the light sweet crude market, with the 50 day EMA sitting just above offering a little bit of resistance. Clearing that opens up the possibility of 70, and then anything above 70 gets Brent really flying.

The $60 level underneath is a floor in the market, at least from what I can see as we had recently formed a little bit of a double bottom, but we haven’t broken to the upside to show enough momentum yet. So as things stand right now, I’m fairly neutral to slightly positive of the oil markets because I think this is going to be an entire process that will take some time.

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