Crude Oil Price Outlook – Crude Continues to Recover

WTI Crude Oil Technical Analysis

The Light Sweet Crude oil market (US Oil) saw a slight rally in the early hours on Monday as it aims to reach the crucial $72.50 level. This price point has been an area of interest for some time, and it makes sense that the market continues to focus on it. Traders will be closely watching whether this level can be cleared because, if it is, there is a strong likelihood that the market will push toward the 200-day EMA, possibly even reaching as high as $78.50. In the long term, we recently pulled back into a massive consolidation area that is now acting as support, making it worth paying attention to.

Brent Crude Oil Technical Analysis

Brent crude markets have also seen gains in the early hours, having cleared the $75.50 level and now testing the 50-day EMA. A break above the 50-day EMA could open the door for a move toward the 200-day EMA, and if that level is surpassed, there is potential for a run to the $82 mark. While reaching $82 may take longer, I believe this is the likely trajectory.

Crude oil has established a strong base underneath, with Brent crude previously testing the $70 level, which was a three-year low. This is similar to what we have seen in the Light Sweet Crude market. Given these conditions, I believe we are in a recovery phase, and I remain bullish on oil for the time being and believe that we are in the middle of forming a range at this point in time.

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