Crude Oil Price Outlook – Crude Oil Continues to See Pressures

WTI/CL Technical Analysis

The crude oil market has drifted a bit lower during the trading session in the early hours on Wednesday as we continue to threaten a breakdown below the bottom of the range that we have been in for a while. The $65 region was a significant resistance barrier for the light sweet crude oil market. And now we are testing this overall area to see whether or not we can break down below it or bounce back into this range. I still favor a bounce, but I want to see it happen before I try to play it. Oil continues to suffer at the hands of oversupply, OPEC pumping, and of course the idea that we may still see a hefty trade war.

Brent Technical Analysis

The Brent market looks very much the same, but in this case, it’s the $68 level that we are testing. It is a range, I believe, that drops all the way down to $67. So, we’ll see if we can bounce, but right now it just looks lackluster. I think oil is going to be a difficult market to trade this summer because we are going to grind more than anything else. If we do bounce from here, $71 or so is going to be resistance, especially as the 200-day EMA comes into that picture.

If oil breaks down below the support in either grade, or both grades for that matter, I don’t know if I would be quick to short the market. I think there is support underneath, and it occurs sooner or later, but right now, this is a very difficult market to trade, so if you are struggling, you may need to cut back on your position size, or perhaps even trade shorter timeframes.

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