Crude Oil Price Outlook – Crude Oil Continues to See Support Below

WTI/CL Technical Analysis

The light sweet crude oil market is pretty choppy during pre-market trading on Monday as we await the open outcry trading session, but at this point it does look like the $65 level is going to continue to be fairly important. We are hanging around the 50 day EMA as well, so I think there’s a lot going on right now that could keep this market somewhat supported.

I don’t necessarily think that we are going to launch into the air, I just believe that we have a situation where the market has maybe found a decent resting place for a while we try to determine whether or not market participants are going to drive the crude oil market higher. All things being equal, I would anticipate that we probably stay in the same range we have been in over the last two weeks or so.

Brent Technical Analysis

Brent markets, of course, look very much the same as Brent continues to test the 50-day EMA, and by extension, the $68 level, the $71.50 level, is an area that offered resistance previously and now features the 200 day EMA. So, it would make a certain amount of sense that perhaps Brent continues to bounce around in this area as well. I’ve got no interest in trying to get too aggressive here because quite frankly, the oil markets have been just complete choppiness over the last couple of years at this point. Oil has definitely changed its attitude. It used to be a lot more explosive.

Now we have situations where it takes something pretty big to get the market moving. At this point, I would anticipate a little bit of back and forth trading here between $68 and $71.50, as we are just simply killing time and grinding sideways overall. Typically, this time of year is fairly positive for crude oil. So that’s why I do believe the support probably holds but I’m not looking for massive swings higher at the moment.

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