Crude Oil Price Outlook – Crude Oil Continues to See Overhead Pressures

Crude Oil Technical Analysis

The light sweet crude oil market has fallen a bit during the early hours on Monday as we have tested the 50-day EMA and the downtrend line. We are below the $60 level. So that, of course, is negative as well. And ultimately, I think this remains a “fade the rally” type of situation as the demand for crude oil just isn’t there right now. Ultimately, this is a market that if we do fall from here, the $58 level could be the target, if the momentum continues to look the same as it does at the moment.

Brent Technical Analysis

Brent markets look very much the same, pulling back from the 50-day EMA and a downtrend line simultaneously. And the Brent market looks very much like the light-sweet crude market in the sense that we are in a bit of a downtrending channel, and it looks like we are, in fact, trying to go lower. Short-term rallies at this point in time are possible, but I think there’s a bit of a ceiling in the form of the $65 level. So, we’ll have to wait and see whether or not that actually gets tested.

But as things stand right now, oil looks very soft, and it looks like a market that you just don’t want to hold. It’s a short-term trader’s market because we are chopping back and forth. So, it’s not a market that you short and forget about either. So, a little bit of nimble, but maybe more negative trading is probably the key here. Bigger positions are probably difficult at the moment.

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