Crude Oil Price Outlook – Crude Continues to Look for the Floor

WTI Crude Oil Technical Analysis

The light sweet crude oil market has dropped just a bit during the trading session in the early hours on Wednesday, as we continue to try to find support below the $72.50 level. There is a large area of consolidation that extends all the way down to the $67 level. So that of course is going to be worth watching. Any bounce from this area could attract a certain amount of attention and I do think that buyers would be very interested in a bit of a recovery bounce.

The 200 day EMA sits just above the $74 level. And if we can break above there, then the market goes looking at the $78.50 level. I don’t really have any interest in shorting oil, despite the fact that there was a little bit of a sell-off after the trade tariff spat between Canada and the US ended. But really at the end of the day, I think what’s worth paying attention to is there is an enormous amount of support underneath, extending all the way down to the $67 level. So, I’m just looking for some type of momentum to follow to the upside.

Brent Crude Oil Technical Analysis

Brent markets, of course, look very much the same, with the exception of they are actually sitting right at support. So it’s possible that Brent leads the way on the recovery. We will just have to wait and see, but it is worth noting that the candlestick from the previous session was a bit of a hammer. And that, of course, suggests that there are buyers willing to pick up oil underneath.

If we can pick up the market and break above the 200-day EMA, then it opens up the possibility of Brent going to the $82 level. Regardless, again, I don’t have any interest in shorting crude oil. I think it will eventually find buyers as we continue to carve out a range for the summer.

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