Crude Oil Price Outlook – Crude Oil Continues to Test Range

WTI/CL Technical Analysis

The light sweet crude oil market has fallen a bit during the early hours here on Tuesday as it looks like we are going to test the $65 level yet again. With that being the case, the market looks very much like a market that is trying to determine whether or not $65 will hold. If in fact it does hold, then it could be very supported, and we could bounce from here. I’d be interested in buying that bounce if we get that potential setup.

Ultimately, though, I think you also have a situation where if we were to break down below the $65 level, it could really get some selling pressure in this market, probably down to $63.50. Keep in mind that this is a time of year that typically traders will look at as being quiet, but slightly positive. So, I am looking for a continuation of the range. We’ll just have to wait and see.

Brent Technical Analysis

The Brent markets look very much the same as they are paying close attention to the $68 level for potential support. I think you’re still looking for a little bit of a bounce that you can take in order to ride back towards the 200 day EMA. If we break down below the $67 level, then I think Brent could be in trouble.

All things being equal, though, we are in a bit of a lull, and I think that lull will continue to persist as market participants just don’t know what to do with themselves in this type of environment. We have tariff wars, questions about growth, and supply out there, but it’s a cyclically bullish time of year. So, I think you have a lot of confusion.

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