WTI Crude Oil Technical Analysis
The light sweet crude oil market has pulled back just a bit here in early Thursday trading, which is not a huge surprise considering that we have been so sideways for a moment. I think that continues to be the main story here, where we bounce around just above the crucial 50-day EMA. We have the 200-day EMA above offering resistance right along with the $62 level.
If we do break down below the 50-day EMA, we also have the previous trendline, which so far has market memory built into it, thereby offering support. Anything underneath there, then we go looking to the $55 level again. I think essentially what is happening here is we are trying to build a new consolidation area, because, quite frankly, that is what oil likes to do. It likes to make a move and then consolidate for a while and then make another sharp move and then find its next range.
Brent Technical Analysis
The Brent markets look very much the same, with the $65 level offering resistance, right along with the 200-day EMA just above there. The 50-day EMA below offers support, and then again, we have the previous trendline over here as well that should have market memory built into it. Again, I think this is going to be a sideways market, and we are trying to carve out that range at the moment.
In general, oil does like to move in about $5 increments, so keep that in mind as you trade back and forth. With a range-bound trading system, I am not looking for big numbers here, nor am I looking for big moves as the supply of crude oil continues to be a bit of an overhang to the pricing.
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