Crude Oil Outlook – Crude Oil Continues to See Volatility

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market rallied a little bit to reach towards the 50-day EMA on Thursday but then pulled back a bit to show signs of weakness yet again. With this being the case, I think you’ve got to look at it through the prism of whether or not we can continue to build up momentum.

And if we can, then a break above the 50-day EMA opens up the possibility of a move to the $75 level. On the other hand, if we do pull back from here, the $70.50 level is a significant amount of support just waiting to happen. In general, this is a market that continues to be very noisy and driven by geopolitics, as well as concerns about a slowdown from an economic standpoint. As things stand right now, it just looks confused.

Brent Crude Oil Technical Analysis

You can say the same thing about the Brent market, as we have broken above the 50-day EMA, and now it looks like we are going to go looking to the $80 level if we can get above there again. A pullback at this point in time could send this market back down to the $73 level, but Brent has the same problem as the WTI crude oil market.

The reality is that the economy isn’t doing as well as people thought, but at the same time we have a lot of geopolitical concerns and there is a significant amount of technical support underneath from the last couple of years. With this being the case, I think you’ve got a scenario where buyers are looking to find a bit of value and they are finding it occasionally, but they are not convinced enough to hang on to the trade. I think we’re just going to stay somewhat range bound.

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