Crude Oil Price Outlook – Crude Oil Continues to See Buying on Wednesday

WTI/CL Technical Analysis

The light sweet crude oil market has rallied a bit to break above the crucial $62 level, an area that is the top of the overall support zone that’s been holding this market together. Ultimately, if we can continue to rally, then the 50-day EMA comes into the picture near the $63.60 level, followed by $65 a barrel. Ultimately, we do have a lot of questions out there about demand and, more importantly, over supply. So, I do think the upside is limited. Signs of exhaustion, more likely than not, will continue to be sold as we just do not have a bullish enough scenario.

Brent Technical Analysis

Brent looks very much the same with the 50 day EMA at the $67.20 level. Signs of exhaustion again will continue to be sold off, perhaps pushed back to the $65 level. If we can break above the $67.20 level, then it’s possible that Brent could go looking at the $69 level, which is the top of the overall range that we have been in. And of course, where the 200 day EMA currently resides, crude oil will continue to be very noisy as we worry about things like global slowdown concerns. And as long as that’s going to be the case, crude oil probably has a little bit of a drag on it. So, I think, again, the upside is somewhat limited, at least at this point in time, as there are a lot of concerns about the global economy and demand.

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