Crude Oil Price Outlook – Crude Oil Continues to Look to Rally

WTI Crude Oil Technical Analysis

The light sweet crude oil market has rallied a bit during the trading session on Thursday in the early hours as it looks like we are at least trying to bounce from a fairly significant drop. The question of course is whether or not the bullish momentum can stay. And right now, I’m a bit mixed on this. I do think that balanced trade could be played, but whether or not it becomes a longer term trade remains to be seen.

We are starting to head into the time of year when things do pick up as far as demand is concerned, typically, but there are so many concerns right now about the global markets and the global economy that I think it provides a bit of an overhang for oil. In other words, I think this is a short-term rally in what is going to continue to be a sideways and messy market overall.

Brent Crude Oil Technical Analysis

The Brent market is up as well. And now it looks as if it is trying to bounce towards the $75 region, but whether or not it can break above there again is a question that remains to be seen. The 50 day EMA is currently at the $75.50 cents level and dropping. So, we’ll see if that offers resistance.

Again, I think Brent is in the same situation. We are at extreme lows and there are people down here willing to buy. It might even be OPEC. They’ve been known to jump into the futures markets occasionally as well. Either way, it is a market that has a hard bottom underneath that $70. And it does look like we’re at least trying to respect that. But whether or not we can get enough money to get things moving in the right direction into the market remains to be seen, and right now I think a lot of people are very hesitant to get overly aggressive to the upside.

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