Crude Oil Price Outlook – Oil Drops a Bit in Early Trading

WTI/CL Technical Analysis

The crude oil market has initially tried to show signs of strength but then gave back those signs of strength to really drop. At this point in time, the market is testing significant support in the light sweet crude oil market at $62. And if we do break down below the $62 region, then we could go looking to the $60 level. We’ll just have to wait and see. The $60 level, of course, I think is the bottom of this range of support. This is an inverted hammer that we are trying to print, but we’ll just wait and see how the day closes down. If we do rally at this point in time, the 50 day EMA above current pricing and the $65 level both offer significant resistance.

Brent Technical Analysis

When you look at the Brent market, it looks very much the same here as well. We initially did try to rally on Monday but found the 50 day EMA to be a bit too much to overcome. And as a result, it looks a lot like a market that is just simply noisy, doesn’t have enough momentum to really get moving. And now as a result, I think you have to look at this through the prism of a market that is probably going to test the bottom of the range.

The bottom of the range is the $65 level. And I think ultimately that is where we’re at here. We’re in a scenario where traders are doing everything they can to test this, maybe even break it. But we’ll just have to wait and see. Brent, of course, has been in a range between $65 and $69 for some time now, and that has not changed yet.

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