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

WTI Crude Oil Technical Analysis

I think what we have here is the question of whether or not we can keep up the momentum. Quite frankly, I’m pretty bearish on oil, at least at the moment, and a pullback from here would not surprise me. That being said, I do not expect oil to break down below the $55 level.

Most players out there prefer stable pricing. Remember, it’s not just a speculative market, and they will do what they can to stabilize things. The biggest issue oil has right now is that there just isn’t enough demand out there to really push things.

If we can break above the $60 level, that would change the overall attitude of the market pretty quickly. But until then, I think you have to look at this as a fade in the rally situation.

Brent Technical Analysis

Brent looks like it is going to struggle with the $64 level, although I would speculate here that $65 is probably a much more important level. I don’t know if Brent is in the same exact position that light sweet crude is, but they do move each other.

If we pull back here and break below the 50-day EMA, then Brent could find itself looking for $60 pretty quickly. Above $65, then we start to have the conversation: Did the trend just change? I don’t think we’re there yet, but I expect more choppy behavior. That’s not really out of sorts for January anyway; January tends to be choppy overall. In a questionable economy worldwide, it makes sense that oil would have a lot of questions asked of it.

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