Crude Oil Price Outlook – Crude Oil Rallies Early on Wednesday

WTI Crude Oil Technical Analysis

The light sweet crude market has rallied significantly during the early hours as we are now at the 50-day EMA and are threatening to break out above the $72.50 level. At this point in time, it looks like the market is likely to continue to try to get to the 200-day EMA, which is sitting just below the $74 level. In general, this is a market that I think has plenty of support underneath, but it’s also going to be a very choppy market, as we just don’t know how to think of trading in general when it comes to the global market.

So, with this, I think you have to be cautiously optimistic, but I also recognize that you have a situation where volatility is probably the norm more than anything else. I do prefer to buy dips, but whether or not we can break out remains to be seen.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same, although it is above its 50 day moving average and it now looks like it’s going to go looking to the 200 day moving average. The $74 level continues to be a massive support level underneath. And I think that is something worth watching. If we can break above the 200 day EMA, then I think it opens up the possibility of a move to the $80 level, and then possibly the $82 level.

In general, this is a market that has pulled back to an area of pretty significant support. And now we are trying to bounce. I do think there are plenty of buyers underneath, but I also recognize that this is not a clean market right now, meaning that there’s no real discernible longer-term move yet.

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