Crude Oil Analysis – Crude Oil Gaps Lower Only to Bounce

WTI Crude Oil Technical Analysis

The light sweet crude oil market has gapped lower to kick off the Wednesday session but then turned around to show signs of life again. This is a market that I think is trying to do everything it can to find a bottom and turn things around to the upside.

The 50-day EMA sits just below, and I think that offers a bit of a floor right along with that previous downtrend line that now has proven itself to be support after being resistance.

The question, of course, is whether or not we can continue to go to the upside and whether or not we can break out. A true breakout would be at the $62 level, and I’m more of the camp of thinking we are going to see range-bound action between the 50-day EMA and the 200-day EMA indicators.

Brent Technical Analysis

Brent markets look very much the same as they’re hanging around the $65 level. We have the 200-day EMA at the $66.18 level, which I think is a bit of a barrier. I think the 50-day EMA underneath the $63 level is your floor.

I do think oil is trying to turn things around completely, but I would anticipate a bit of sideways action for a while, as there is a lot of damage to repair. There are a lot of concerns when it comes to oversupply and a lack of demand, especially if trade is going to be disrupted by tariffs yet again.

Nonetheless, this is a market that, from a technical analysis standpoint, looks like it’s trying to build up the necessary accumulation pattern to continue going higher, which means sideways for a while is what I anticipate.

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