Crude Oil Price Outlook – Crude Oil Continues to Build Basing Pattern

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market has shown itself to be somewhat positive in the early hours on Tuesday as it looks like we are trying to grind our way toward the $72.50 level again, the $72.50 level is a significant resistance barrier, so I think it does take a little bit of effort to finally get above there, but if and when we do, I think we really start to take off. Over the last several months, we’ve been building a bit of a base in this market, and now the question is, will we get some type of momentum? Short-term pullbacks, for me at least, are going to continue to be buying opportunities.

Brent Crude Oil Technical Analysis

The Brent market, of course, looks very much the same and is testing the crucial 50-day EMA. The 50-day EMA, of course, is an indicator that a lot of people pay attention to. And with that being the case, I suspect it’s probably only a matter of time before we start to see people chase. If we can break above the $76 level, I think that opens up the next leg higher.

Short-term pullbacks in the Brent market much like in the WTI market will continue to attract buyers looking to get a little bit of value here in a market that I think ultimately will start to take off to the upside early next year as central bank liquidity measures probably drive up the need for energy. Regardless, I don’t have any interest in shorting.

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