Crude Oil Price Outlook – Crude Oil Continues to Watch the Middle East

WTI/CL Technical Analysis

The light sweet crude oil market had initially rallied during the trading session on Friday, but you can see has given back some of the gains to show just how confused the market is at the moment, which makes a certain amount of sense considering that the Iranians and the Israelis are still at war. And of course, there’s worries about the straight of her moves being blocked, et cetera, et cetera.

Nonetheless, this is a market that I think most people are looking to buy dips in. I certainly don’t think you can short this market, but we could drop all the way down to the $68.50 level and still be very bullish because that is how far we would have to drop to test the 200-day EMA. On the upside, the $78 level looks to be a pretty significant barrier. Breaking that obviously could send oil much higher.

Brent Technical Analysis

Brent markets look very much the same, with a little bit of attention being paid to the $79 level as massive resistance and the $72 level, where the 200 day EMA currently is offering support. A short term pullback here makes a certain amount of sense and that short term pullback is something that I think a lot of people will be looking into to take advantage of what obviously is a changing trend.

Keep in mind that when we are in the midst of changing the overall trend, it gets very messy, as you have seen, and it will continue to be. So, you have to keep your position size reasonable. But at this point, it’s impossible to short oil.

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