Crude Oil Price Outlook – Crude Continues to Recover on Tuesday

WTI Crude Oil Technical Analysis

The light sweet crude market has shown itself to be rather bullish during the early hours on Tuesday as market participants continue to see value in a market that had been sold off quite drastically. At this point in time, we are threatening the 200 day EMA in the light sweet crude market. So, we’ll have to wait and see whether or not we can break out above there.

Quite frankly, if we can get above $75, I think that’s the signal that we are going to go much higher. Otherwise, short-term pullbacks could be thought of as buying opportunities. As the market has been in the midst of breaking out from a previous consolidation area, it has now pulled back and tested it. but it looks like there’s plenty of upward momentum going forward.

Brent Crude Oil Technical Analysis

Brent looks very much the same and it also finds itself testing the 200 day EMA, which of course will have a major influence on technical analysis, but the $70 level I think is the real key here. If we can get above there, then it’s likely that the market will take off to the $82 level, the $75 level below, I think is a significant support level.

So, pullbacks over here, I also believe that this is a buying opportunity. In general, this is a market that has seen a lot of volatility and volume as of late. So that tells me we might be in the midst of changing the overall attitude of the market and as we shot straight up in the air and pulled back, volume picked up, so I think we are in the midst of a trend change and we probably are going higher.

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