Crude Oil Price Outlook – Crude Oil Finds Buyers After Plunging

CL/WTI Technical Analysis

The light sweet crude oil market has initially plunged during trading on Thursday here, but you can see that we have had a little bit of a bounce. So the question at this point in time is whether or not we are going to form a double bottom. Quite frankly, crude oil looks miserable, but if this candle can hold, then it at least gives it a shot at a technical bounce.

A breakdown below the $55 level could open the floor and send crude oil racing to the bottom. To the upside, if we can recapture $60, then the light sweet crude market should become more bullish at that point and perhaps even try to make a run back to the $65 level. That being said, there’s a lot of work to do.

Brent Technical Analysis

Brent has initially fallen during the day to peak below the $60 level only to find buyers to turn things around and get involved. The $60 level has been important multiple times in the past, so it does make a certain amount of sense that we would see this as a potential double bottom. We’ll just have to kind of see how that plays out.

I think you’ve got a situation where traders are going to be very hesitant here, but when you look at the longer term charts, the $60 level has been important multiple times. If we break down below there, then things could get rather ugly. That being said, with the jobs number coming out on Friday, it might be a little bit choppy over the next 24 hours.

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