Crude Oil Price Outlook – Crude Oil Continues to See Support

WTI Crude Oil Technical Analysis

The light sweet crude oil market rallied quite significantly during the early hours on Tuesday. And now it looks like we are trying to break out again. It’ll be interesting to see if we can because, quite frankly, we’re at a major support level going back three years. So clearly, we’re in an area that could at least lend itself to attract value hunters.

Given enough time, I think you’ve got a scenario where we continue to try to sort out whether or not we have enough momentum to really break out to the upside. Right now, we’ll see, but I do think that the $70 level could be the next target if we do, in fact, continue to pick up momentum.

Brent Crude Oil Technical Analysis

Brent markets have broken above a shooting star from the previous session, which of course is a very bullish sign. So therefore, I think we need to be watching this closely. This is a market that has, of course, the same trajectory as the light sweet crude oil market and, therefore, probably going to be aiming for the $74 level given enough time as it’s right at the 50-day EMA. The short-term pullback continues to find plenty of support every time it happens near the $70 level.

And $70, of course, is an area that has been important multiple times over the last three years or so. And as a result, I think you have to be watching whether or not that holds. Now, when I say $70, keep in mind that I do mean all the way down to about $68.50. There’s a buffer zone there, but it does look like we are trying to pick ourselves up off the floor. And the risk to reward is definitely skewed to the upside at this point, as we are so oversold.

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