Crude Oil Price Outlook – Crude Oil Continues to See Floor

WTI/CL Technical Analysis

The crude oil market has rallied just a touch during the early part of the trading session on Wednesday as the light sweet crude market has bounced from the crucial $65 level. This is an area that has been rock solid for both support and resistance going back to March. So, with that being the case, I think you’ve got a situation where the candlestick eventually probably tries to break above the 50 day EMA, perhaps going towards the 200 day EMA, maybe even the top of the range towards the $70 level. On the other hand, if we do break down below the $64 level, that would be extraordinarily negative. As things stand right now, I think we’ve got a situation where we are still in the middle of a trading range.

Brent Technical Analysis

The Brent market looks very much the same as we have bounced from the $68 level, but we are struggling with the 50 day EMA. The market has the same kind of feel to it as the other grade, as it’s just at the bottom of a range that has been crucial for some time. And I think you have to look at this as a market that given enough time, probably tries to reach the other side of the range towards the 200 day EMA and the $72 level. All things being equal, I think oil is just kind of stuck in a very tight range and therefore range bound traders will continue to love trading this asset.

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