Crude Oil Price Outlook – Crude Oil Continues to See Sideways Action

WTI Technical Analysis

The light sweet crude oil market has been slightly positive during the early hours on Friday, but quite frankly, it’s just more of the same action as we continue to bounce around the $67 level. At this juncture, I think you’ve got to be a short-term back and forth range bound type of trader to really make any profits in this market. Although I’m watching the $68.50 level very closely because if we can break above there, then it’s likely that the light sweet crude market could go looking to the $70 level. If we break down below the $65 level, then I think the bottom falls out and you start to see crude oil really take a beating.

Brent Technical Analysis

The Brent market looks very much the same. It looks like $72 above offers significant resistance and 68 below offers significant support. At this point, it’s the same thing as well. It’s just a sideways base building. I really wouldn’t be surprised if OPEC wasn’t in the futures market supporting crude oil, they’d been known to do that from time to time.

And quite frankly, there’s nothing going on here unless of course, again, you’re a short-term trader focusing on five, 10, 15 minute charts, then maybe you have the ability to make some money. But for swing traders, it’s really an area they just need to watch and recognize if and when we break out or break down. There’s a lot of concerns out there about global demand at the moment. And as long as that’s the case, oil is going to be a bit lackluster.

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