Crude Oil Price Analysis – Crude Continues to Levitate

WTI Crude Oil Technical Analysis

The light sweet crude oil market has pulled back just a bit by the New York open but then turned around to show signs of life. Ultimately, this is a market that I think continues to see a lot of volatility, but the reality is that the $100 level is a major barrier that I think a lot of traders will be focused on.

If we can break above there it could lead to more FOMO trading but right now it seems like it’s a wait and see type of situation where the scenario is bad for oil but it’s not horrible. It hasn’t gotten worse, so we’ll see. Pullbacks, more likely than not, could end up being buying opportunities all the way down to at least $85.

Brent Technical Analysis

The Brent market fell toward the $100 level only to rally again toward the $106 level and it does look like it is going to continue to tick higher. Brent markets look much stronger, and that makes quite a bit of sense considering Brent is more closely tied to the war as opposed to light sweet crude, which is North American. The Brent market fell toward the $100 level only to rally again toward the $106 level and it does look like it is going to continue to tick higher.

Short-term pullbacks should end up being buying opportunities. A breakdown below the $100 level is a potential drop to the $95 level. I do think this remains a positive market, but I also recognize that you do not want to chase it because we’ve seen wild swings in both directions. Because of this, position sizing will be the most important thing you need to control in this asset.