Crude Oil Price Outlook – Crude Oil Testing Resistance

WTI/CL Technical Analysis

The light sweet crude oil market has initially tried to rally during the trading session here on Friday, but then turned around to show signs of weakness. We are sitting at the $65 level, a large, round, psychologically significant figure. And that, of course, is an area that has shown itself to be important more than once.

After all, it was previously support as well as resistance multiple times in the past. So, I think this is an area that you will see a lot of noise at, and a lot of resistance. A short-term pullback does make a certain amount of sense, but if we can clear the $66.50 level, then I think we can go higher.

Brent Technical Analysis

Here in the Brent market, we initially gapped higher, but we are pulling back to show signs of hesitation. The 200-day EMA seems to be offering a bit of resistance, and as long as we are below there, technically we are still somewhat negative. I think more than anything else, we’re still sideways. We are trying to break out though. So, this is a market that’s worth watching. I think a pullback is more likely than not.

But ultimately, it’ll be interesting to see if we can break out to the upside in both grades of oil because it looks like we’re at least trying. Expect volatility, but we’ve had three pretty strong days in a row before this one. So, as a pullback, I don’t think it changes much. It might put us back in the trading range previously. But again, watch that potential breakout. That could be a sign that we’re going higher.

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