WTI Technical Analysis
The light sweet crude oil market has gone back and forth during the trading session here on Thursday as we continue to bounce around in the same range. The $66 level above offers a significant barrier, with $62 offering significant support right along with the 200-day EMA.
Keep in mind that this is a market that I think will continue to be very noisy as the United States and Iran are in the midst of trying to come to some type of an agreement, and that could help the market cool off a little bit. As of late, though, it looks like sideways action is probably going to continue, and short-term traders continue to look at this as a range-bound trading opportunity.
Brent Technical Analysis
The Brent markets are closer to the top than the bottom, so one would think there should be some pressure here as the $70 level has been crucial. If we can break above $71, then I think it’s free to go to $73, but in the meantime, keep an eye on the downside with the 200-day EMA at the $66.44 level offering a bit of potential support.
Back and forth trading here is probably likely as well, although we’ll have to watch what happens on Friday. If there is no agreement between the Americans and the Iranians, then there may be concerns about a military strike coming, and that could put a little bit more pressure to the upside in this market.
If there is an agreement, I suspect you will probably see this market pull back just a bit, although I think we’re in the middle of trying to carve out a trading range regardless.
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