Crude Oil Price Outlook – Crude Oil Continues to See Basing Pattern

CL/WTI Technical Analysis

The light sweet crude oil market initially tried to rally during the trading session on Tuesday but has turned right back around. I really think at this point in time, we are probably more or less looking at this as a potential consolidation area, maybe a basing pattern. It is worth noting that the volume has picked up a little bit. So that helps with the idea of accumulation as well.

I think the $63 level remains somewhat important, and I’m pretty sure we’re $60 itself as well. If we can break above $63, then it opens up the possibility of a move to the $65 level, which, of course, had previously been support and should now be resistant. There are still a lot of concerns about global demand, so that, of course, continues to keep this market somewhat subdued.

Brent Technical Analysis

Brent looks very much the same as it is trading just below the $65 level, an area that of course has a little bit of psychology attached to it, but if we can break above $66, then it opens up the possibility of a move to the $70 level. Short-term pullbacks at this point in time are buying opportunities, especially with the $60 level hanging out just below, which, of course, is a large round psychologically significant figure that a lot of people would be paying close attention to.

And of course, an area where we had seen a lot of volume the last time we were there. So, with that being said, I think you have to like the idea of a consolidation area here. Now we have to see if we can get some type of good news to get the idea of demand picking up to drive prices higher.

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