Crude Oil Price Outlook – Crude Oil Continues to Rise

WTI/CL Technical Analysis

The light sweet crude oil market has rallied a bit in the early hours on Wednesday to test the 50 day EMA. The 50 day EMA has been like a downtrend line over the last couple of months, but at this point, the real resistance is probably closer to the $65 level. Underneath current pricing, we have the $62 level offering support all the way down to the $60 level.

The market is of course very sideways and has been running for a while, and therefore I think you’ve got a situation where we will go back and forth and perhaps, we are going to be running into a bit of a bust solid resistance. That being said, if we can break above the $66 level, then perhaps crude oil picks up a bit of momentum. But as things stand right now, I think we’re still just consolidating.

Brent Technical Analysis

Brent markets look very much the same as we are starting to reach the $69 level, which, of course, has been in resistance. Any move above there opens up the possibility of a move to the $70 level, where the 200-day EMA currently sits. Short-term pullbacks are possible, but really at this point in time, I don’t think we’ve got a situation where the trend changes, unless it changes to the upside.

The $65 level is a massive floor in the market, and I think it continues to be as such. Ultimately, the biggest problem that oil has right now is that there is a major oversupply from Russia, OPEC, and the United States. And of course, there are questions about whether or not the global economy is slowing down. If it is, that will put a bit of a lid on this market. But right now, nothing’s really changed other than we’ve shown a little bit of upward trajectory over the last couple of days.

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