Crude Oil Price Analysis – Crude Oil Continues to Drop

WTI Crude Oil Technical Analysis

The Light Sweet Crude Oil market has shown itself to be rather negative during the early part of the trading session on Wednesday, and we find ourselves threatening the $70 level. At this point, I think we’re going to try to fill the gap, meaning that we are going down to roughly $68, which is a complete round trip from when the war started.

The markets are already pricing in normalcy. I think that’s a little early. I think the supply chain disruption still influences the market. Short-term rallies at this point in time will almost certainly be sold into, but I do think that a bounce will come sooner or later. Ultimately, though, those short-term rallies that show signs of exhaustion should be opportunities for short selling.

 Brent Crude Oil Technical Analysis

The Brent market is also dropping, and we have just about filled that gap. In other words, it’s like the war never happened. The $70 level could be targeted as well. This is quite remarkable.

Again, I think that traders are betting on a return to normalcy rather quickly, but I would also point out that Brent, being above $70 this time of year, would be normal. So, I don’t know how much further we have. I think it’s probably only a matter of time before we get a bounce for a couple of days.

At the first signs of trouble, though, I’m willing to short this market. I don’t want to try to front-run any type of bounce; I think that would be a great way to lose money.