Crude Oil Price Outlook – Crude Continues to Stall Just Below Resistance

WTI Crude Oil Technical Analysis

The Light Sweet Crude oil or West Texas oil market has found itself to be struggling near the $78.50 level, an area that’s been important resistance multiple times in the past as well as support. This is not a huge surprise. We got a little overstretched here. So really what we’re hoping to see is a little bit of a pullback that we can take advantage of value.

Ultimately, if we do take off to the upside and clear the recent high of the last couple of days and probably even the $80 level, that will release the oil market to go much higher. That being said, you have to be very cautious with chasing the trade, but one thing is clear here, you certainly do not want to get short of this market.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same as we are going back and forth, just below the $82 level and currently testing the $80 level. The $82 level being broken to the upside opens up the possibility of a much bigger move, perhaps to the $88 level. Short-term pullbacks at this point in time should continue to be buying opportunities.

And I think the 200-day EMA underneath is your floor in the market, somewhere near the $78 level. Keep in mind that a lot of this comes down to whether or not the energy demand continues to pick up, but it certainly seems like that is the case. And with that being the situation, I think anytime you see crude oil markets fall a bit, it is an opportunity that you should be taking advantage of.

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