Crude Oil Price Outlook – Crude Oil Slumps in Early Monday Trading

WTI Crude Oil Technical Analysis

The light sweet crude oil market has gapped lowered to kick off the trading session on Monday only to turn around and test the support that just got broken. The question now is whether or not we can continue to rally. I do believe ultimately oil will enter its seasonal trade and we will rally, but this has been really messy and nasty trading.

And in fact, it’s probably a somewhat untradable market unless you are a short-term back and forth type of trader because you just see how noisy it’s been. If you’re a range-bound short-term trader, then this is your market. The $72.50 level above is significant resistance, and massive support can be found at $67, but I do think that the $70 level is coming into play for short-term support as well.

Brent Crude Oil Technical Analysis

Brent markets look very much the same as you would expect. It’s probably worth noting that we’re just a few days away from rolling over to the next contract, which of course is going to be May. And with this, you would assume that there will be more demand, but there are a lot of concerns out there about the global economy, and I think that keeps this somewhat range-bound, but maybe with a little bit of bullish pressure underneath.

I’d be more short-term focused in this market, but I don’t really like the idea of getting too big in this market. If you can sit and babysit your trade on the computer, then maybe it’s doable, but you would be looking at 15 minute charts, at best. Longer term, I still think we’re trying to build some type of bass, but it’s obviously taking longer than I thought.

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