Crude Oil Price Outlook – Oil Continues to See Overhead Resistance

WTI Crude Oil Technical Analysis

The light sweet crude oil market has shown itself to be somewhat negative during the trading session on Wednesday in the early hours as market participants continue to see a lot of questions asked about the tariffs, which of course will be announced at the end of the session. With this, I don’t think a whole lot of risk is being taken at the moment and therefore you have to be very cautious.

The market has been bullish for a while though and therefore I think you have to assume that sooner or later things will follow to the upside if for no other reason than this is the time of year that typically we see a lot of bullish pressure in crude oil. A break above the 200 day EMA releases light sweet crude to go much higher.

Brent Crude Oil Technical Analysis

Brent markets of course look very much the same as they are pulling back a bit. They are still a little bit above the 50 day EMA. So, I think you have to keep that in mind, that the 50 day EMA could offer significant support, we’ll just have to wait and see. But ultimately, I look at this as a market that is going to go looking at the $75.50 level sooner or later.

A short-term pullback makes a certain amount of sense, as we are overextended. But I look at that as an opportunity to get long of Brent yet again. Ultimately, this is a market that I think remains very noisy, but we are in the process of building a bottom for the summer. Therefore, I’m thinking long only at the moment and as I see this price action today, I step away and let the market come back to me.

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