Crude Oil Price Outlook – Crude Oil Continues to See Consolidation

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market or the US Oil Market rallied a bit in the early hours to gain a little over 1.5%. When I look at this chart, the most obvious thing I see is that the $70 level will probably end up showing a bit of resistance right along with the 50-day EMA. But at the end of the day, when you look at the chart, you can see that we are simply consolidating. The question is, are we just consolidating to build up a base and go higher, or are we just settled in?

Right now, I think you have to assume that we are settled in. If we were to break down below the $65 level, it would be absolutely toxic for the market, but there’s no real sign that it’s going to happen. So, I think range-bound traders continue to do well.

Brent Crude Oil Technical Analysis

The Brent market is very much the same situation, although we are closer to the major support. So I suppose if I am going to buy it, I like this one a bit better than the US oil market, but at this juncture, I think the upside is somewhat limited as traders are worried about the idea of demand and of course whether or not the United States starts flooding the market with crude oil soon.

We’ll have to wait and see how that plays out, but really at this juncture, I think you’ve got to look at this through the prism of a market that is trying to find its floor at a previously important area. that has been around for a couple of years. And really at this point, I think we just need some type of fundamental reason to get moving in one direction or the other. In the meantime, though, I think you just go back and forth. You continue to be range bound traders.

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