Crude Oil Price Outlook – Crude Oil Continues to Look Like a Basing Market

CL/WTI Technical Analysis

The light sweet crude oil market has plunged pretty significantly during the early hours on Thursday, but as you can see, the market also looks as if it is trying to recover a bit. So interesting, to say the least. And with that being the case, I think you’ve got a situation where traders will continue to look at this $60 level as important and pay close attention to it for a potential floor in the market.

If we break down below there, then you have the $55 level offer in support. It’s not until we close above the $65 level that I think the real momentum starts to jump into this market.

Brent Technical Analysis

Brent also has fallen, but just like the light sweet crude market has bounced a bit from the lows. It’ll be interesting to see how this thing plays out, but I think we are also very much in the midst of some type of recovery here. And at this point, I would suggest that $60 ends up being your floor in the market, while 70 looks to be like a significant barrier.

As things stand right now, we’re right in the middle of that range. So, I think we’re still in the middle of the same basing pattern. I do favor buying dips over shorting this market. I do think eventually we will recover because quite frankly optimism is starting to pick up there, and that is something that could very well drive the market overall as oil is the life’s blood of the global economy moving goods and services etc.

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