Crude Oil Price Outlook – Crude Pulls Back from Resistance

WTI/CL Technical Analysis

The light sweet crude oil market did open up roughly flat, it turned around to try to rally and then it gave it all back. At this point in time, it does look like it’s going to test the 50-day EMA, and it also looks as if the area between $65 and $66 is still a bit of a ceiling. We could go sideways, and by sideways, I mean lower from here to reach toward the $62 level underneath, which of course is an area that’s been very supported.

Ultimately, there’s really nothing going on out there for crude oil to change its overall trajectory and I suspect, barring some type of external event, crude oil probably continues to stay in the same range for the time being.

Brent Technical Analysis

Brent markets have gapped lower to show signs of extreme weakness and now that we are well below the $69 level and even tried to rally to break back above it to fill the gap and fail, now we find ourselves challenging the 50-day EMA over here as well. The bottom in this area is $65. We could reach it, but either way, it certainly looks like we aren’t ready to go anywhere new at this point.

So, this is a sideways market as well, with oversupply coming out of Russia, OPEC, and the United States, and of course, a lot of questions about global demand. Ultimately, this is a very flat and sideways market, so you have some very obvious areas for support and resistance that you can take advantage of if you are, in fact, a range-bound trader.

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