Crude Oil Price Outlook – Crude Oil Continues to Attempt Recovery

WTI Crude Oil Technical Analysis

The light-sweet crude market has rallied a bit during the early hours on Friday. It looks like we are trying to recover. The Thursday candlestick ended up being a hammer right at support, so this all ties together for potential consolidation. Ultimately, I do think this is a market that bounces, but I also recognize that things are going to be very noisy for the time being.

So therefore, you need to be somewhat cautious about getting overly aggressive with your position size. Nonetheless, I do like the idea of perhaps taking advantage of the short term pullbacks as a potential buying opportunity in the general area that we are at right now. I think there is significant support underneath near the $70 level that you need to be paying close attention to also.

Brent Crude Oil Technical Analysis

The Brent market has rallied a bit during the trading session during Friday, but it’s also worth noting that we’re right here at the 50 day EMA. And that is something that needs to be paid close attention to. If we can break above there, then it opens up the possibility of a move to the 200 day EMA, but we’ll have to see whether or not that actually could happen.

In general, I think this is a market that is more or less a buy on the pullback type of situation with the $74 level underneath being your short-term floor in the market. I think oil is getting ready to head into a bullish run, but it may take some time getting there.

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