Crude Oil Price Outlook – Crude Oil Continues to Form a Base

WTI/CL Technical Analysis

The light sweet crude oil market is going back and forth during the course of the trading session on Friday as we are testing that crucial $60 level. The $60 level, of course, is a large, round, psychologically significant figure that has had an influence on the market going back multiple years. So, it’s not a huge surprise to see that we have bounced just a bit. The market bouncing from here could open up the possibility of a move towards the 50 day EMA. However, if we break down below the $60 level, it could open up a move down to $57.50 and then possibly even as low as $55, where we had the double bottom form.

Brent Technical Analysis

Brent markets also look a bit choppy. They are dancing around the $63 level, an area that has been somewhat important on shorter term charts. And I think here you just have the same situation, we have a double bottom that we have to pay close attention to. And you have to look at this as a market that is probably trying to find its footing for the next swing higher, we’ll just have to wait and see. That being said, Monday is Memorial Day in the United States.

So, futures markets will have limited hours. Keep that in mind, it might be a bit of a thin market. But as things stand right now, I still think the oil markets are trying to do what they can to find their footing and turn things around in an environment that, quite frankly, isn’t good for them. Oversupply, lower demand as certain economies around the world are slowing down, and of course, fresh tariffs.

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