Crude Oil Price Outlook – Crude Oil Continues to Drift on Monday

WTI Crude Oil Technical Analysis

The light sweet crude oil market has gone back and forth during the early hours on Monday, as we are just hanging around the $60 level. The $60 level is a large, round, psychologically significant figure and an area that a lot of people will be paying attention to because it extends all the way to $62 for resistance. This zone, roughly $2 tall, has been important multiple times in the past, but there are a lot of concerns when it comes to whether or not there is going to be demand. The 50-day EMA could offer resistance in this resistance zone, and rallies likely open up the possibility of shorting. I do not want to buy this market, at least not yet.

Brent Technical Analysis

Brent markets have gapped lower only to turn around and rally in early Monday trading. The $65 level opens up the possibility of a significant resistance barrier, having been tested a couple of times recently. The 50-day EMA is also right there. Ultimately, a lot of traders will come into this market looking to sell it at the first signs of exhaustion. At this point, I do not want to buy Brent either, and it is not that the Brent market is going to collapse; it is simply that the upward momentum does not appear strong enough to carry it forward. If we fall from here, somewhere around the $62.50 level, giving way to selling pressure could really open up the trap door back down to $60.

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