Crude Oil Price Outlook – Crude Oil Continues to See Support Underneath

WTI Crude Oil Technical Analysis

The light sweet crude market has been back and forth during the course of the trading session on Monday as we are hanging around and trying to figure out whether or not we have enough momentum to turn things around and start going higher. Ultimately, I think you have a situation where traders have to look at this through the prism of a potential buy on the dip and perhaps value proposition.

But right now, we just don’t have enough to go on to suggest that it’s worth getting overly aggressive. The 50 day EMA sits above the $72.50 level, and I think that is something worth paying attention to because if we can break above there, then it’s very likely that the market races to the upside towards the 200-day EMA, and maybe even as high as $78.50. I find that there is a lot of support underneath, so even if we pull back, I’m a bit hesitant to start getting short.

Brent Oil Technical Analysis

Brent markets look very much the same, as you would expect, as market participants continue to try to determine what the global economy is going to end up doing, and what these potential tariffs could mean. Ultimately, I think you’ve got a situation where traders are looking to try to find some type of bottoming pattern, but whether or not we actually get it remains to be seen.

The 50 day EMA above, I think being broken to the upside is key for a bigger move to perhaps the 200 day EMA followed by $82. Again, I don’t really want to short the oil market at these fairly low levels. I’m waiting to see if we can get any type of momentum. However, keep in mind it was President’s Day in the United States, so a lot of future traders may not have been at work.

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