Crude Oil Price Analysis: Crude Continues to Struggle with Momentum

WTI/CL Technical Analysis

The light sweet crude oil market has initially rallied to reach the 50-day EMA on Thursday, but it gave back the gains pretty quickly. Because of this, it does look like we are still in a region of consolidation and noise. And I think it is going to be difficult for traders to truly pile into this trade. If and when we do rally from here, you have to keep in mind, again, the 50 day EMA is a problem. But you also have the $65 level above there that I think could be a bit of a target.

The $65 level is an area that has been important multiple times in terms of both support and resistance. So do pay close attention to it. Ultimately, breaking above that then opens up a huge move to the upside from what I can see, as you would have a scenario where traders look at this through the prism of an inverted head and shoulders that just kicked off.

Brent Technical Analysis

Brent markets, of course, look very much the same as the market initially rallied but gave back those gains. And now it appears that we are going to go looking at the $68 level. The $68 level is an area much like I had just talked about in light sweet crude that ended up being both support and resistance. So again, if we can break above there, it’s a very good sign that we are going higher and probably much higher, perhaps even as high as $75. I think the whole world is kind of aware of this bottoming pattern.

So, it’s probably only a matter of time, but in the meantime, we do need to build up the pressure, build up confidence and those types of things in order to really get excited about buying into the crude oil markets as they of course have a lot of external factors such as the global slowdown, the global tariff situation, et cetera. And of course, they also have to deal with the fact that OPEC has flooded the market with supply.

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