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WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market has fallen initially during the trading session on Monday, showing signs of hesitation but ultimately, I think we’ve gone far enough to the upside that it’s obvious that the buyers are going to continue to be the main driver of the market. The $90 level above will offer a certain amount of resistance, and if we can clear that, it’s likely that the market goes toward the $95 level above.
Breaking down below the bottom of the candlestick opens up a move down to the 50-Day EMA, which is closer to the $85 level in the futures market. If we break down below there, then the market is looking to the 200-Day EMA. That being said, it’s very difficult to imagine crude oil falling for a significant amount of time, due to the fact that there are a lot of tensions in the Middle East. Furthermore, inflation continues to push fuel higher anyway.
Brent Crude Oil Technical Analysis
Brent markets have pulled back just a bit early in the trading session on Monday as well, but turning back around shows the resiliency in this market. All things being equal, the market is likely to get a look into the $95 level above, which is where we had pulled back from. If we can break above that level, then the market could send Brent all the way up to the $100 level. If we break down below the $90 level, then it’s likely that we could go looking to the 50-Day EMA after that.
All things being equal, this is a market that will continue to be very noisy, but I’d still prefer the upside, and I do think that short-term pullbacks will continue to be something that you need to look at for opportunities to pick up “cheap oil.” Ultimately, I do think that we break out to the upside unless something changes quite drastically in the Middle East, which doesn’t look very likely to happen in the short term so I still look at pullbacks as potential buying opportunities in a market that is obviously very strong.
For a look at all of today’s economic events, check out our economic calendar.
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