Crude Oil Price Outlook – Crude Continues to Bounce Around

WTI Crude Oil Technical Analysis

The light sweet crude market has dropped a bit in the early hours on Wednesday and CPI came out a little hotter than anticipated, but quite frankly, at this point, I think that only helps oil given enough time as traders will start to look at the fact that we are heading into the driving season in the United States. And if there’s one thing that Americans can do, it is spend.

So it’s very likely that we will see a bounce. And if we can finally overtake the 200 day EMA then I think we could go looking to the $76 level, possibly even $78.50. Pullbacks in this area, I still think, are going to end up being buying opportunities before it’s all said and done. Nonetheless, I do recognize that there is a bit of volatility in this area, so you have to be cautious with your word position sizing.

Brent Crude Oil Technical Analysis

Brent markets have also pulled back a little bit in the early hours as well, using the 50-day EMA as a bit of a floor so far. The $75.50 level below continues to be support as well, as is the $74 level. Again, if we can overtake the 200-day EMA, and in the Brent market, it is ostensibly the $78 level. Then I think it opens up the possibility of moving to $80 followed by $82.

I am bullish of oil at the moment, but I also recognize that we are in a huge bottoming pattern, and you have to be extraordinarily patient and careful with position sizing in these scenarios.

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