Crude Oil Price Outlook – Crude Oil Continues to See Support

WTI Crude Oil Technical Analysis

The WTI crude oil market rallied a bit during the trading session as we continue to see a certain amount of buying pressure near the $67 level. But quite frankly, the thing to pay the most attention to here is the fact that this support level from $67 down to $65 has been important for a couple of years now, and therefore it’s not a huge surprise to see a little bit of a technical bounce.

I even suggested the other day that perhaps this is something that you could buy on a short-term chart, but you can’t get too excited about it. It’s not a big trade. It’s probably not going to suddenly take off, at least without some type of help from a geopolitical problem. Above, we have a significant amount of resistance at the $70 level, and then again, at the $72 level, which of course features the 50-day EMA.

Brent Crude Oil Technical Analysis

The Brent market rallied a bit in the early hours on Wednesday as we are above the $75 level and are now testing the 50 day EMA. If we can pick up a bit of momentum here, then we could go all the way to the $80 level, which of course is a large round psychologically significant figure and the scene where the 200 day EMA is currently hanging about. I do think that the jobs number on Friday will probably have a little bit of influence as well, so the next couple of days could be noisy.

Either way, we have been close enough to the bottom of the overall trading range for the last couple of years that I don’t really look for selling opportunities, but I also don’t necessarily expect this market to suddenly change trends either.

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