Crude Oil Price Outlook – Oil Continues to See Floor

WTI Crude Oil Technical Analysis

Really at this point in time, I think we’ve got a situation where there is a major barrier above with the 50-day EMA hanging right along with that downtrend line. All things being equal, a sign of exhaustion will probably be jumped on and shorted. But if we do break out above, then the $60 level would be the next potential area where you would run into a lot of trouble. This has been the situation for some time, and I don’t see oil changing in the short term.

Brent Technical Analysis

Brent markets have rallied a bit as we are starting to peel back some of those losses from the previous session. We have a downtrend line and the 50-day EMA right there. Any rally at this point in time that shows signs of exhaustion is going to end up being opportunities to short from what I can see. This is a market that continues to suffer at the hands of a lack of demand and a larger supply.

But I also think we’ve got an environment where the lack of volume is just simply going to be an issue as well. So, I’m still looking for negative price action to take advantage of. But I don’t necessarily think that the crude oil markets are going to fall apart from here. In general, I feel like this is a market where there are plenty of traders willing to short. But I also recognize that with New Year’s Day being this week, it’s going to be a very erratic and probably thinly traded market for the next couple of days.

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