Crude Oil Price Outlook – Crude Oil Continues to See Same Floor

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market has shown itself to be somewhat supported during the early hours on Tuesday as we continue to see a lot of noisy behavior. That being said, I think you’ve got a situation where we are fairly close to a major bottom from the last couple of years in the form of $65, so you have to watch that.

But I think in general, we just continue to go back and forth because, quite frankly, I don’t think anybody knows what they’re doing at this point. So, with that being the case, I think you’ve got a situation where you’re looking to buy dips for short-term trades, not necessarily anything beyond that. The market breaking below the $65 level would of course be a major turn of events, but until we break down below there, I think you have to assume that there is some floor in the WTI crude oil market right around that $65 level.

Brent Crude Oil Technical Analysis

Brent markets, of course, continue to pay close attention to the $70 level as a major support level. And I do think that continues to be one of the biggest parts on this chart that you’ll be paying attention to. If we were to break down below $70, I could change a lot of things, but right now you’ve got a situation where as long as we can stay above there, then I think you’ve got a real shot at buying short-term dips.

These short-term dips that you buy into are more likely than not going to be just short-term trades. I wouldn’t necessarily hang on to it because quite frankly, this is a situation where the market just can’t get up off the floor, but it does have a massive amount of interest in it, so nonetheless, it doesn’t look like it’s trying to break down. The 50-day EMA is sitting right around the $75 level, so that might cause a little bit of psychological resistance, but we just continue to bounce around more than anything else.

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