Crude Oil Price Outlook – Crude Oil Continues to See noise

WTI/CL Technical Analysis

The light sweet crude oil market has pulled back just a bit in the early hours of Wednesday, essentially wiping out a majority of the gains from the previous session. And I think this tells us just how noisy and obnoxious this market may end up being. With this being said, there are a lot of different things going on right in this area, with the $65 level offering support and resistance. The 50 day EMA sits there as well. We did see a lot of volume coming into the market during the Tuesday session. So, we’ll see if the volume picks up during the Wednesday session.

Ultimately, this is a market that I think is trying to find its range. And right now, we are in the midst of testing some barriers. So, it’s a very difficult market to trade. I do think there is a little bit of a lid on oil though, because quite frankly, with Russia, OPEC and the United States all pumping out massive amounts of oil, it’s going to be difficult for it to really take off to the upside. I think more back and forth sideways action makes more sense.

Brent Technical Analysis

The Brent markets have pulled back just a bit during the trading session on Wednesday in the early hours, and again, we’ve pretty closely came to the bottom of the candlestick from the previous session. So, it shows you just how choppy and noisy this is going to be. I believe that crude oil markets, Brent markets, especially will be very range bound, with the $67 level offering an obvious support level at the moment.

The 50 day EMA is right here in the middle of the mix and above we have the $69.50 region offering resistance followed by the 200 day EMA. Quite frankly, I think sideways short-term trading is the only real play here.

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