Crude Oil Price Outlook – Crude Oil Continues to See Consolidation on Wednesday

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil, or the US oil market, has risen ever so slightly in the early hours of Wednesday as we are now testing the 50 day EMA. The market has been consolidating for a while and quite frankly, I think that does make quite a bit of sense considering that traders are trying to figure out whether or not we’re going to see demand or if we’re going to see a slowdown economically which obviously has a major influence on what happens next year.

If we can break above the $72.50 level then I think we could break up. Underneath current trading, we have the $65 level offering a massive floor in the market. As long as we can stay above that level, I think we’re okay. Range bound traders continue to be attracted to this market.

Brent Crude Oil Technical Analysis

The Brent market also is testing the 50 day EMA and really at this point in time, I think we’re looking for some type of attempt to break above the $76 level, which opened a move to the 200 day EMA followed by the $80 level. In general, I believe this is a market that continues to be sideways more than anything else, but the $70 level looks to be a massive, massive support level.

And if we can stay above there, then I think you have more of a buy on the dip kind of consolidation. If we were to break down below the $70 level, Brent could fall apart. In that environment, I suspect we’d lose another $5 rather quickly.

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