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Crude Oil Price Outlook – Crude Continues to See Ceiling Above as it Builds a Base
Published: Apr 23, 2025, 13:51 GMT+00:00
The crude oil market has been a bit negative in the early hours of Wednesday, as the market has been building a base for some time now. With this, it is likely that we will see noisy trading in the short term.
CL/WTI Technical Analysis
The light sweet crude oil market had initially tried to break above the $65 level during the early hours on Wednesday, only to turn around and fall pretty significantly. This doesn’t necessarily mean that things are going to get negative. I think what we’ve got here is a situation where the market is trying to find its range and $65 might be the top of that range in the short term.
The $60 level underneath should be significant support. So that’s the range I’m trading in this market. However, if we could break above the $65 level, then I think light sweet crude could go looking at the 50 day EMA. I do think, based on volume profiles and the volume at the bottom of the chart, that the market is trying to form some type of bottom in this overall range. Because of this, I think you’ve got a situation where we are going to try to rally, which is a cyclical trade. That’s a seasonal trade for crude oil, as typically demand picks up this time of year.
Brent Technical Analysis
Brent markets look somewhat similar, although they did not reach a big figure. reached $68, which is an area that has been important in the last couple of days. But I think with short-term pullbacks at this point in time, it makes a certain amount of sense that buyers would be underneath looking to pick up cheap barrels of oil. I do think that we’re in a bottoming pattern right along with the light sweet crude market, as the volume has picked up significantly over here as well. And both had recently tested a major swing low over the last several years.
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About the Author
Christopher Lewisauthor
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.
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