Crude Oil Price Outlook – Crude Oil Continues to Look Supported

WTI Crude Oil Technical Analysis

The West Texas Crude Oil Market or the US oil market rallied a bit in the early hours on Monday as it is now reaching the 50 day EMA at this juncture. It’ll be interesting to see if we can continue to go higher. And I would keep an eye on the $72 level because it probably has something to say as well.

On a break above that level, we could see the West Texas Intermediate Crude Oil Market go to the $75 level. On a short-term pullback, then I think we’ve got more of this somewhat base building pattern that we’ve been in for a while. Keep in mind that somewhere near the $65 level, we have the low of the last couple of years. So, there is significant support underneath.

Brent Crude Oil Technical Analysis

In the Brent market, we rallied quite nicely. And at this point, we are also testing the 50-day EMA right around $75. So, keep that in mind. If we can break above there, then the market could go looking to the $80 level.

Short-term pullbacks could end up being buying opportunities and those buying opportunities will end up being valuable as far as I can see. Ultimately, this is a market that has been very difficult to get aggressively long up, but it does look like it’s trying to form some type of base. The election and the Federal Reserve could both have an influence on what happens next based on the idea of economic growth. So, we’ll just have to wait and see. But I would say this remains more or less a buy on the dip market, at least in the short term.

For a look at all of today’s economic events, check out our economic calendar.