Crude Oil Price Outlook – Crude Oil Continues to Look Stable
AdamSummary:
Crude oil prices remain stable near key support levels. WTI eyes a bullish breakout above $66.50 toward $72.50, while Brent hovers near support, needing a catalyst after recent market turbulence.
WTI/CL Technical Analysis
The light sweet crude oil market is just simply hanging around to reach the $65 level, which is an area that previously had been significantly resistant. We fell precipitously to this level only to sit still. That, for me, is actually a very bullish turn of events as it looks like the market is done with a lot of the Middle Eastern noise and now, we’ll start to focus on demand and more fundamental, typical reasons.
All things being equal, this is a market that I think is looking for some type of catalyst, but there’s also the possibility that the traders are just simply exhausted at this point. If we can break above the $66.50 level, then I think light, sweet, crude opens up the possibility of a move to the $72.50 level. If we break down from here, then I think we just re-enter the previous consolidation.
Brent Technical Analysis
Brent markets look a bit the same. They’re a little, maybe a little bit softer than the light sweet crude market, but again, we are sitting on top of pretty massive support based on the previous consolidation. So, with this being the case, I think you’ve got a situation where traders will be watching if we can break above the $69 level, then potentially we go higher. With that, I think we’ve got a situation where the 200 day EMA may be targeted.
If we break down from here, I think there’s plenty of support at various levels, not the least of which would be $64, followed by $62. So we’ll have to watch. I think this is a market that is trying to find its floor as well. But we had so much drama over the last couple of weeks, it may need a few days just to simply catch its breath.
Source: fxempire
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