Crude Oil Price Outlook – Crude Oil Continues to See Supporters

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market rallied a bit during the early hours on Friday as we continued to bounce around. That being said, I’m not expecting too much this time of year because after all, we are right in the middle of two major holidays and therefore liquidity will probably be a major issue.

However, looking forward, I do fully believe that the West Texas Intermediate Crude Oil market will rally a bit and perhaps even break above the $72.50 level. Once we break above the $72.50 level, then it’s very likely that we will continue to go much higher. Short-term pullbacks between now and then should see plenty of support near the $68 level as well as the $67 level, so do keep that in mind.

Brent Crude Oil Technical Analysis

Over in the Brent market, you can see that we initially did try to rally, but then pulled back a bit to show signs of hesitation as well. So therefore, I think it has to be thought of as a market that is doing everything it can to find its bottom, it just isn’t there. The WTI grade will probably continue to outperform anyway due to the fact that it’s a lot more heavily influenced by the United States than the Brent market, so I think that is part of your bifurcation here.

Nonetheless, I do believe that the Brent market has a significant amount of support below the $70 level and that’s something that needs to be paid close attention to. I do think that given enough time we could break towards the $76 level, possibly even reach towards the 200-day EMA eventually. We are in the midst of bottoming in the crude oil markets from everything I see, so really at this point in time I don’t have any interest in shorting these markets, and it’s worth noting that we have recently bounced from a major support level, going back a couple of years in both grades.

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