Crude Oil Price Outlook – Crude Oil See Resistance Above

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market initially rallied a bit during the early hours on Tuesday only to give up the gains and show signs of exhaustion. With that being said, the market is getting fairly close to the top of the overall range. So, I think this is somewhat expected. Furthermore, you also have to keep in mind that holding crude oil futures over New Year’s Day isn’t necessarily something that a lot of people are comfortable with, especially considering we are in the middle of a consolidation pattern.

So, there’s nothing stopping you from buying it again at the next opening session. With that being said, I do think pull banks offer buying opportunities, and I do think that we are in the midst of a bottoming pattern. So, I remain buying the dips in this market.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same. We’re sitting just above the 50 day EMA. I think there’s massive support underneath near the $70 region. And much like WTI, I think we’re in the midst of turning things around, but it is a process. It’s not an instant thing.

Once we get a little bit of liquidity, perhaps even a little later than some of you think, maybe it’ll be after the non-farm payroll announcement in America, then I think dips will slowly start to expand higher. I do expect West Texas Intermediate to lead Brent though, by virtue of it being more of an American contract and America is where the growth is at the moment. If we break down below $70, it’s likely both grades oil will go plummeting, but right now, that’s not my base case scenario. I still believe this support holds.

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