WTI Crude Oil Technical Analysis
The light sweet crude oil market has been a little soft during the early hours on Tuesday, as we continue to hang out in the same general vicinity we have been for the last couple of weeks. We are stuck between the 50-day EMA underneath and the 200-day EMA above. The market is paying attention to the $60 level, and the $62 level has offered a bit of a barrier to the upside.
All things being equal, this is a market that I think will be more sideways and short term back and forth type of trading.
Brent Crude Oil Technical Analysis
The Brent market looks very much the same, using $65 for support. At this point in time, I think you have got to look at this as a scenario where people are going to continue to trade between the 50-day EMA and the 200-day EMA indicators and try to determine what happens next.
The supply and demand situation is a major issue at the moment due to the fact that pretty much everybody is just throwing oil out into the market, so that keeps prices suppressed, but there is a little bit of a geopolitical concern. That is why we are starting to squeeze in this area.
Keep in mind, we have recently bounced from a major support level in both grades of oil that goes back multiple years, but we have not really taken off either. More sideways short-term trading is what I would expect in this market over the next few sessions.
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