Crude Oil Price Analysis – Crude Oil Continues to Coil

WTI Crude Oil Technical Analysis

The light sweet crude oil market has pulled back slightly during the early hours here on Tuesday but remains right in the middle of an overall consolidation range. This is a market that I am watching very closely because it is coiling at the moment. Volume is picking up in consolidation, and I think it’s trying to break higher.

The $62 level and the 200-day EMA sitting just above there both offer support, with the $66 level offering resistance. If we can break out above $66, then the market goes looking to the $70 level. Otherwise, I think we do continue to chop back and forth, but it does to me look like a market that is basically refusing to fall.

Brent Crude Technical Analysis

The Brent market initially saw a little bit of a pullback, and now it has turned around to reach toward the $70 level. For me, it makes quite a bit of sense that Brent may take off to the upside before light sweet crude does, mainly due to the fact that the Americans are likely to hit the Iranians with some type of military strike, which this market would be a little more sensitive to that, although both will spike as soon as that happens.

Ultimately though, I think there is quite a bit of resistance at the $70 level that will have to be tangled with, so I think this is still at least until something external happens going to be a buy on the dip situation going forward. However, I would expect some noise regardless of what happens next.