Crude Oil Price Outlook – Crude Oil Drops Early on Wednesday

WTI/CL Technical Analysis

The light sweet crude oil market has shown itself to be somewhat negative during the early hours here on Wednesday, but we are starting to see a little bit of a bounce. We are hanging around the 50 day EMA, which of course will attract a lot of attention in and of itself, and we are sitting just below the crucial $65 level. Underneath, we have a significant floor in the market near the $62 level, and therefore we are still range bound. We have the FOMC meeting later in the day, and one would have to assume that it’s going to cause a bit of chaos throughout the financial markets, definitely with the dollar, which will definitely move this market. As things stand right now, I fully anticipate that we are going to stay somewhat in this range by the end of the session, even though it’s going to be noisy.

Brent Technical Analysis

Brent markets look very much the same, sitting just above the 50-day EMA and just below this $69 level. And at this point, you have to look at this through the prism of a market that’s close to the top of its range. And unless we get some type of major capitulation by the Federal Reserve that they’re going to flood the markets with money, it’s likely the oil stays in a range over here as well. Pay attention to the 200 day EMA at the $70.16 level, because if we can break above there, then the market really could start to take off. Otherwise, I think we will stay in a range here as well.

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