Crude Oil Price Outlook – Crude Oil Continues to Struggle to Find Momentum

CL/WTI Technical Analysis

The light sweet crude oil market has rallied slightly during the early hours here on Friday as we continue to hang around the $60 level. That being said, this is a market that I think continues to see a lot of overhang as far as selling pressure is concerned, and I believe that pressure runs all the way up to the $62 level. Between here and the $62 level, we have the 50-day EMA also, and that of course, comes into the picture to show signs of hesitation. If we were to break down below the lows of the Thursday session, then it’s likely that this market will go looking down to the $56 region yet again.

Brent Technical Analysis

The Brent market has rallied slightly as well, but just like the light sweet crude oil market, we have seen a little bit of selling pressure. Now it looks like a market that is more likely than not going to continue to fade rallies. Keep in mind that the same problems that the other contract has, Brent has—mainly the fact that the United States, Russia, and OPEC are all out there pumping as much crude oil into the market as they can.

With that being said, I think you have to assume this is a market that will continue to be difficult to hang on to for longer-term buy-and-hold type situations. I do think fading short-term rallies continues to work. Although I don’t think this is a market that’s going to collapse, there is something to be said about short-term negativity continuing to be a major issue.

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