Crude Oil Price Outlook – Crude Continues to Build a Base

WTI/CL Technical Analysis

The light sweet crude oil market has shown itself to be somewhat positive in the early part of the trading session on Monday gaining well over 1 % but we are still within the same kind of consolidation region that we had been in previously. Short-term pullbacks I think offer buying opportunities and I look at the $60 level as a potential area of significant support.

If that is, in fact, going to be the case, then I think we are in the midst of doing everything we can to fill this area here in order to build a basing pattern. The basing pattern, of course, could be the beginning of something to the upside. Perhaps it’s some stability. After all, oil had been crushed for a while, but there’s so much volatility out there. I think the one thing you have to be aware of is your position sizing and just how dangerous things can be.

Brent Technical Analysis

Brent looks like it’s trying to do the same thing, essentially doing whatever it can to find a base. We’ll have to wait and see if that is going to end up being the case, but I anticipate that what we have here is a situation where we probably spend more time sideways than anything else. That’s not necessarily a bad thing, it’s just a thing.

This could be the beginning of an attempt at a recovery, but after the type of selling that we have seen over the last couple of months, it would not surprise me at all for this market to just take a breather down here, perhaps trying to convince itself that we are going into a range. And then maybe if we get some type of positivity out there with the risk appetite, then we can recover towards the $70 level.

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