Crude Oil Weekly Price Outlook – The Crude Oil Markets Finds a Floor

WTI Crude Oil Weekly Technical Analysis

The West Texas Intermediate Crude Oil Market has rallied rather significantly during the course of the trading week as we are now threatening the $71.50 level. The market, of course, is continuing to see the $67.50 level as support. And now that we have seen the market rally from here, I think we, more likely than not, we’ll try to work our way toward the top of the range, which is all the way to the $80 level.

I don’t think we get there easily, but if you look at the last couple of years, this is just the same action that we’ve seen multiple times. I also recognize that there is always a potential for some type of concern coming out of the Middle East.

Brent Crude Oil Weekly Technical Analysis

The Brent market also looks as if it is trying to rally a bit, and now I think you’ve got a situation where the $70 level, of course, is a floor in the market, and I think that given enough time, we probably go looking to the $80 level, which is an area that obviously will attract a certain amount of attention and then beyond that, $90.

If we were to break down below the bottom of the range in either one of these crude oil varieties, that obviously probably drags the other one down with it. However, the support levels that we are testing in both the West Texas Intermediate and the Brent markets both go back about three years. So, it is most certainly an area that has been heavily defended by the bullish. With this, I think you probably lean to the upside, but I wouldn’t go in with massive position sizing by any stretch of the imagination.

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