Crude Oil Price Outlook – Crude Continues to Look for Certainty

WTI Crude Oil Technical Analysis

The light sweet crude oil market has fallen a bit during the trading session on Friday to kick things off, but it does look to me like a market that very well could stay somewhat range bound. I think you’ve got a situation where traders will be watching closely to see whether or not there is going to continue to be a floor extending down to the $67 level.

After all, this is a level that’s been important for quite some time now, and I think you have to assume that sooner or later traders will have to come to a longer term decision. If it looks like the market is going to continue to see a bit of a floor here, then one has to wonder how long will it be before market participants will be looking at this through the prism of value. If we can break back above the $72.50 level, then I think you’ve got a real shot at this market really taking off.

Brent Crude Oil Technical Analysis

Brent markets, of course, are in the same situation in so much as trying to find a floor right now. I don’t know that we are quite there yet, but we are getting closer. And with that being the case, you have to assume that sooner or later, somebody has to make a bigger decision.

Ultimately, I like the idea of Brent going higher, but right now we just don’t have the necessary upward momentum to make that kind of thing happen. Over the longer term, I do anticipate that the $70 level will continue to hold as a major support level, so keep that in mind, but I don’t really appreciate the idea of trying to short here, getting so close to such a massively obvious area. In general, this is a market that I think over time, we’ll try to take out the 50-day EMA and then the 200-day EMA, but you’re going to have to be very patient.

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