Crude Oil Price Outlook – Crude Continues to Look at Support

WTI Crude Oil Technical Analysis

The light sweet crude market has shown itself to be slightly negative in the early hours of Thursday as we continue to bang around in this same consolidation range between roughly $68.50 and $65.50. All things being equal, it’s also worth noting that we have a major support level from the last three years, so buying on the dip has worked fairly well for short-term traders. As far as longer-term traders are concerned, though, there just isn’t much here to be had. This is an era where you would expect accumulation, but we have no momentum at the moment.

Brent Crude Oil Technical Analysis

Brent markets look very much the same as well, as the area between $71.50 and $68 continues to be their range. Much like light sweet crude, we have to worry about whether or not there is going to be enough demand due to the fact that the global economy could be slowing. If we were to break down below the $68 level, that means oil’s dropping drastically and the economic outlook is much worse than people are trying to price in.

I suspect that we will try to bounce from this three-year support level, but we just don’t have the necessary momentum to get involved in anything outside of a short-term back and forth type of range-bound scalping opportunity. Longer term, we will probably bounce as we head into a higher demand season here in the next few months, but right now it looks like a market that is the realm of the five and 15 minute traders.

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