Crude Oil Price Outlook – Crude Oil Continues to See Overhang or Resistance

WTI Crude Oil Technical Analysis

The light sweet crude oil market has rallied a bit during the trading session here on Wednesday as we are now testing a downtrend line yet again, and of course, the 50-day EMA as well as the $60 level.

With that being the case, I think you have a scenario where you continue to fade the rally every time it occurs, because, quite frankly, the demand for crude oil just isn’t going to be there. Over the longer term, I don’t really know what moves this market to the upside, but eventually something will. I think right now, though, we’re just stuck in this pattern of high supply and low demand, and that will keep prices somewhat suppressed.

Brent Technical Analysis

Brent markets have also rallied, and they also have to face a downtrend line as well as the 50-day EMA, but they’re a little further from those. And then at this point, probably have a little bit more room here to go to the upside before selling off. Again, though, this is a short-term trader’s market. You can basically fade the rallies, collect some profit, rinse and repeat until something fundamentally changes.

Right now, Brent, of course, is suffering at the same hands, negative forces like the light sweet crude oil market is with OPEC, Russia, and the United States pumping out a ton of oil right now into an economy that quite frankly doesn’t need it. As long as that’s the case, then this is more of a “fade the rally” type of situation here.

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