Crude Oil Price Outlook – Crude Oil Continues to See Support

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market had initially pulled back just a bit during the early hours on Thursday but has turned around to show signs of life again. Ultimately, this is a market that I think given enough time probably has to make a bigger decision, but as things stand right now, I think we are looking at this through the prism of a market that’s perhaps trying to build a little bit of a base here.

The $65 level underneath has been a major support level, and the $72.50 level has been a major resistance level. If we can break above that, then we really start to take off. But in the meantime, I think range bound traders will continue to take advantage of the back and forth.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same, initially falling during the trading session, only to turn around and show signs of life again. Market participants continue to pay close attention to the 50 day EMA just above. And with that being the case, I think if we can break above there, it probably opens up a move to the $76 level.

Brent is in the process of trying to find its floor, its bottom, if you will, with the $70 level being crucial, not only in the short term, but on a longer term chart. The Brent market is closer to support, so therefore it’s probably not as bullish as the West Texas Intermediate market, and that does make a certain amount of sense considering that the West Texas Intermediate is directly influenced by the United States. However, both of these grades of crude oil should move in the same direction given enough time. So I do believe that eventually we probably break a little bit higher, but in the meantime, traders should take advantage of the range if they have the ability.

For a look at all of today’s economic events, check out our economic calendar.