Crude Oil Price Outlook – Crude Oil Continues to Rally

WTI Crude Oil Technical Analysis

The light sweet crude oil market has rallied to touch the 50 day EMA again, and it now looks as if it is trying to threaten the $70 level. If we can break above the $70 level, then it’s likely that the market could go looking to the $72.50 level. Short-term pullbacks, I believe, will end up being buying opportunities as we have just hit the bottom of a major range that we have been in for the last three years.

Remember, the area between $67 and $65 is very important and the fact that we have taken off from there does suggest that we are trying to hold and defend that bottom. Another thing that I would pay attention to is that the cycle is typically that we start to see an acceleration in price this time of year.

Brent Crude Oil Technical Analysis

Brent has rallied as well, breaking above the 50-day EMA and it looks as if it is about to break out to the upside. A move above $74 could very well send this market chasing the 200 day EMA. The market could be pricing in inflation as well because despite the fact that we are starting to see concerns about a slowdown, most of the forward looking indicators that I see in various economies around the world show that inflation is going to drop and then turn back around.

That’s especially likely in the United States, but it’s also true in Europe. After all, if Europe is, in fact, starting to see growth, it makes sense that Brent, which is much more of a measure of European demand, would continue to go higher. I like buying dips in both of these markets.

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