Crude Oil Price Outlook – Crude Oil Continues to See Sideways Set Up

WTI Crude Oil Technical Analysis

The crude oil market rallied a bit in the early hours on Monday trading as we continue to see more or less a sideways market. Overall, this is a market that will probably stay range bound for the time being because we have so many different things going on at the same time that traders will be paying attention to geopolitics, but they’ll also be paying attention to supply issues.

Obviously, the Middle East is still a problem and that is something that will have to be watched. So, I think that’s part of what’s keeping the market somewhat afloat, but really, I think more than anything else. We probably have just a simple range bound play here. We were towards the bottom, a quick pop higher makes sense, but I wouldn’t get married to any long position.

Brent Crude Oil Technical Analysis

Brent markets look very much the same. The $70 level being a significant round figure, probably an area I would imagine where you would see a certain number of options barriers put up. So that probably comes into play and then just the basic human psychology of loving these round numbers. If we do break down below the $70 level, just as if we break down below the $65 level over in the WTI market, I think you get really ugly trading in oil for a while.

I don’t know if that’s going to happen, but there are a lot of concerns about demand and the fact that the global economy is not performing the way that people had hoped. As things stand right now though, I’m more inclined to play the back and forth type of setup here, perhaps using short term charts and something like a stochastic oscillator.

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