Crude Oil Price Outlook – Crude Oil Continues to Fall Apart on Tuesday

WTI Crude Oil Technical Analysis

The light sweet crude oil market has broken to a fresh new low, and it looks at this point as if we are going to do everything we can to break towards the $55 level. The $55 level, of course, is a large, round, psychologically significant figure that a lot of people will be watching. It formed a double bottom in the early part of the year. We will have to wait and see whether or not it actually has the ability to hold the market up again, because, quite frankly, if we do break down below the $55 level, there could be a bit of an air pocket. Short-term rallies continue to be selling opportunities in this oil market.

Brent Technical Analysis

The Brent market has broken through the $60 level, and now it’s threatening the $58.50 level, which, of course, is an area that had caused that double bottom in April in this version of crude oil. And I think ultimately you have to look at this as a market that’s on the precipice of a major sell-off. With that being the case, I think we have to look at this through the prism of whether or not this can hold. If it cannot hold, then we could see a bit of a bounce and therefore perhaps a challenge to the $62 level. But once you get above $62, I think it’s probably only a matter of time before the sellers come back, as there is just such little demand for oil at the moment as supply is so strong.

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