Crude Oil Price Outlook – Crude Oil Continues to See Noisy Consolidation

WTI/CL Technical Analysis

The light sweet crude oil market has rallied a bit here on Monday in limited thin electronic trading. What I find interesting is that we have found the 50 day EMA again, which sits right at $65 level. The $65 level, of course, is an area where we have seen both support and resistance, so I’ll be watching that very closely for a potential turnaround. If we can break above the $65 level rather handily, then we could go looking at the $67 level. A pullback from here just means that we continue with the same consolidation pattern that we’ve been in for the last five or six trading sessions, which is very possible at this point.

Brent Technical Analysis

Brent markets have rallied as well, but we are sitting here at the 50 day EMA also, with the $67 level underneath offering support and the $66 level underneath there also offering support. To the upside, the $70 level is a potential target as it is a large round, psychologically significant figure and an area that sits just below the crucial 200 day EMA. With that being said, the market is very noisy, but I think more than anything else, the market is sideways. And I think that’s how you have to look at it. Short-term range bound traders are going to love this market. Anybody looking for a bigger move, though, is probably going to be frustrated. So, pick your time frames accordingly.

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