Crude Oil Price Outlook – Crude Oil Continues to Consolidate

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market fell fairly significantly during the early part of the early Wednesday session dropping 2.67% by the time Wall Street starts to wake up. At this juncture, this looks like a market that is going to continue to see a lot of back and forth in this area, and I do think at this point in time, the $65 level underneath is a major floor. Above we have the $75 level of above offering a significant amount of resistance.

And it’s probably worth noting that I have the 50 day EMA at the top of the candlestick for the day. So, this tells me likely that technical traders are continuing to watch the overall trend. All of that being said, we are sideways between $65 and $75. So therefore, I think if we continue to fall a bit, it might end up being a short-term buying opportunity.

Brent Crude Oil Technical Analysis

The Brent market, of course, has shown a bit of negativity pulling back from the 50 day EMA. And with that being said, I think you’ve got a situation where the market could go looking towards the $70 level. But really at this point in time, that large round psychologically significant figure is an area where a lot of people have seen support in the past.

So, bouncing from there would be a massive amount of support coming back in to keep the market in some form of status quo. I think that’s probably what we get, but really at this point in time, it’s probably too early to tell. I certainly don’t want to short this market now. It has fallen a bit too much in the early hours to try to chase it, but I will be watching very closely if we get anywhere near the $70 level to see how things play out there.

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