Crude Oil Price Outlook – Crude Oil Continues to Consolidate

WTI Crude Oil Technical Analysis

The light sweet crude oil market has initially fallen during the trading session on Wednesday only to turn around and show signs of life again. Ultimately, we are hanging around in the same range that we’ve been in for a couple of weeks now, with the $65 level on the bottom offering significant support and the $68.50 level offering significant resistance. We’re basically in the middle of this area, but it’s worth noting that this is a market that is sitting on top of a major support level going back three years. So, with that being said, I still favor buying dips, at least as things stand right now, but I think we are stuck in this range.

Brent Crude Oil Technical Analysis

Brent looks very much the same as we have bounced from the $70 level. The $68.50 level on the bottom and the $72 level on the top define the range that we are in right now. And again, it’s the same situation where we have been sitting on a major support level for the last three years.

That being said, the market is likely to continue to see a lot of noisy behavior, but if we can break above the shooting star that was formed on Tuesday, that could open up a move to the 50 day EMA, followed by $75.50. Regardless, I think you’ve got a situation where crude oil is going to continue to fight to build some type of basing pattern, but there is so much uncertainty out there about the global economy right now that it is difficult for oil to have a sustainable rally.

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