Crude Oil Price Outlook – Crude Oil Continues to See Buyers on Dips

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market has been slightly positive in the early hours of Tuesday as we continue to flirt with the crucial 50 day EMA. All things being equal, if we can break above this moving average indicator then I think the West Texas Intermediate crude oil market could drive towards the $75 level above as traders continue to try to price in some type of major bottom.

The market has formed a bit of a triple bottom just above the $66 level, and I think this is a perfect sign of where the market won’t go. So, with this being the case, I think you have to look at this through the prism of the bottom of a two-year trading range holding. And if that’s going to be the case, then you want to lean to the upside. But I would use the phrase lean, mainly due to the fact that I don’t think we are going to see some type of massive move. Short-term pullbacks probably offer value at this point.

Brent Crude Oil Technical Analysis

Over in the Brent market, it’s a little bit stronger for the session, but it is also struggling with the 50-day EMA, so that is a reason to pay close attention. If we can break above there, then it opens up a move to the $80 level where the 200 day EMA currently hangs about. In general, this is a market that has been very noisy right along with West Texas Intermediate crude oil, but this is a situation where short-term pullbacks will continue to be buying opportunities.

If we can break above the $80 level, then the market could really start to take off. Nonetheless, the $70 level underneath I think is your hard floor for the last couple of years. So short-term pullbacks, like I said, gives you an opportunity to pick up a little bit of value. But whether or not you should be hanging on to the trade, that will be a completely different conversation altogether.

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