Crude Oil Price Outlook: Analyzing Buyer Trends Near the Bottom

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market initially fell during the early hours on Tuesday, only to turn around and show signs of life. All things being equal, this is a market that looks as if we are trying to reach towards the $71.50 level. If we can break above that level, then I think it opens up more momentum in this market and we could see a little bit deeper of a rally. Short-term pullbacks at this point in time offer plenty of buying opportunities, perhaps all the way down to the $67.50 level.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same as we had pulled back just a bit, and now it looks like we are trying to break towards the $75 level. If we can break above the $75 level, then it’s possible that we could go looking to the $80 level above. All things being equal, this is a market that I think continues to see a lot of volatility as well. And I think that Brent has a massive floor near the $70 level.

Market Sentiment

In general, this is a situation where traders are looking at this through the prism of whether or not we are bottoming. And bottoming is likely to continue to see a lot of interest paid to it due to the fact that we are close to the bottom of the overall consolidation that we’ve been in for two years. Geopolitical issues, of course, continue to be very prevalent and that should continue to work in favor of the oil market. And then of course, we have to ask whether or not there isn’t just a technical setup that you can take advantage of.

For a look at all of today’s economic events, check out our economic calendar.