Crude Oil Price Outlook – Crude Oil Continues to See Range Hold

WTI/CL Technical Analysis

The light sweet crude oil market initially tried to rally during the trading session on Friday but then turned around to fall pretty significantly. The market is still very much in the same range it’s been in for a while. And I think at this point, we are still trying to find some type of base or floor, if you will, for the market.

The $60 level underneath should be an area that I think a lot of people will look at as a major floor for the market and area that should hold, but if it does not, then obviously that gets the market looking very dark. The $65 level above, of course, is major resistance and I think we’re just going to bang around in this area while we try to sort out whether or not there is enough momentum to go higher.

Brent Technical Analysis

The Brent market looks somewhat negative, but at this point in time, I think we’ve got a situation where traders are just going to continue to go back and forth and sort out where we go next. The $60 level underneath continues to be an area of interest as a floor in the market. But if we can break above the $70 level where the 50 day EMA currently resides, that would be a very bullish sign for Brent.

At this point, we are basically in the middle of this range. So, I think it’s just a very neutral market. Short-term traders probably will do well on range bound trading. But beyond that, we’re still in the construction phase of a potential bottom.

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