Crude Oil Price Outlook – Crude Continues to See Support at The Same Area

WTI Crude Oil Technical Analysis

The West Texas Crude Oil Market has shown itself to be somewhat positive, but at the moment it looks like we are still very tight, and I think that any upward momentum probably gets thwarted given enough time. The 50-day EMA currently sits right around the $71.20 level and is dropping so I think that’s something that you need to be cognizant of.

But if you can break above there then the market is likely to go look into the $75 level not only due to the fact that it has some history, but it’s also the fact that the 200-day EMA sits there. Underneath, we have the $65 level serving as a bit of a floor in the West Texas Intermediate Crude Oil Market, and I think that continues to be the case. After all, it was from two years back.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same, with the $70 level being its support level going back a couple of years. And at this point, if we can reach the 50-day EMA near the $75 level, I think that’s where you start to see some trouble. Anything above there opens up a move to the $80 level, but we would have to wait and see.

Keep in mind that the markets are testing the bottom of a very large consolidation area that goes back quite some time. So, it does make a certain amount of sense that there will be buyers waiting to pick up cheap barrels of oil. I don’t think this is a market for a longer term trade though, and I think this is just simply a quick smash and grab type of setup.

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