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Crude Oil Price Outlook – Oil Facing Overhead Resistance
Published: Jan 6, 2026, 14:30 GMT+00:00
Any bounce in oil looks like a selling possibility to me at the point in time.
WTI Oil Technical Analysis
The light sweet crude oil market initially did pull back a bit on Tuesday but then turned around to show signs of life. That being said, we are at a major crossroads as far as resistance is concerned, with the 50-day EMA and a downtrend line both causing a little bit of a ceiling. If we can break out above there, I think we could go looking at the $60 level, but this is an area that I think will be difficult to overcome. If we can overcome that, then the $62 level would be your next target.
That being said, there are a lot of concerns for crude oil in general right now, despite the fact that there were actions in Venezuela. It’s not that, it’s the fact that there is an oversupply and a lack of demand. Because of this, I’m looking for crude oil to give up some of its gains, show signs of exhaustion, and perhaps start shorting again. The next day or two could be when we see that break.
Brent Technical Analysis
The Brent market looks very much the same, with the 50-day EMA sitting just above, offering resistance right along with the downtrend line. If we can clear that area, then the $64 level is a barrier that I think extends all the way to the $65 level. So, I do think you will probably get some type of exhaustion, like a shooting star or just a long wick in general, that you can start to pay close attention to. Below, we have the $58.50 level on a hard floor. I don’t know if we break down below there, but it wouldn’t surprise me to see this market try to get back down to that area.
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About the Author
Christopher Lewisauthor
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.
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