Crude Oil Price Outlook – Crude Oil Continues to Build Pressures

WTI/CL Technical Analysis

The light sweet crude oil market has been a little bit sideways during the early hours on Wednesday as we continue to see a lot of back and forth trading overall. Ultimately, I think you have a situation where we are trying to build up the necessary momentum to break above the crucial $65 level. If we can break above the $65 level then it is very likely that we just take off to the upside.

This time of year is typically bullish for crude oil, so this is basically what I’m expecting, but there is a lot of uncertainty out there in general. So, it does make sense that we take our time.

Brent Technical Analysis

The Brent market looks very much the same. We are sitting just below the crucial 50 day EMA and if we can break above there, then the $68 level then gets targeted. Anything above $68 will send this market higher, perhaps reaching the 200 day EMA.

I don’t have any interest in shorting the oil at this point. I think we’ve got a scenario where we are just simply trying to build some type of basing pattern before we rally again. After all, the crude oil market had sold off way too much at one point. And I think you’ve got a situation now where traders continue to look at this through the prism of sideways with a slightly upward tilt. Be cautious with your position size. Volatility will be a feature of this market. But again, if we can break above the $68 level, I think we will go a lot higher.

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