Crude Oil Price Outlook – Crude Continues to Build a Floor

WTI Crude Oil Technical Analysis

The Light Sweet Crude market or the West Texas Intermediate crude oil market has shown itself to be somewhat supported again during the early hours on Friday as the $72.50 level continues to be an area of significant support. With this being said, I do believe that the market participants out there are going to be looking for some type of momentum to jump back into the market and then, perhaps, see the market break above the crucial 200 day EMA. If and when it happens, then I think you’ve got a real shot at the market rallying pretty significantly, perhaps as high as the $78.50 level. At this point, I really don’t have any interest in shorting this market. I do think that there are plenty of buyers underneath and plenty of demand.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same as we are hanging around the 50-day EMA, but we also are paying close attention to the 200-day EMA above, which of course is a significant barrier. If we can get above the 50-day EMA and then again, the 200-day EMA, I do think this market is going much higher.

I don’t have any interest in shorting this one either because, quite frankly, this is a market that has been important more than once over the last couple of months as we shot higher and then found support. And it’s worth noting that the market has recently bottomed out at a two year support level. With central banks around the world easing financial conditions, I do think it’s probably only a matter of time before this market starts to rally as well.

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