WTI Crude Oil Technical Analysis
The light sweet crude oil market is struggling a bit in the early hours of Monday after initially rallying. We are facing a major barrier in the form of $62 and I think that is an area that you need to be very cognizant of as a potential ceiling.
Not only do we have the $62 market history, but we also have the 200-day EMA in that area as well. The 50-day EMA sits right around the $59 level, and I think that is your short-term floor. This market likes to bounce around and range trade quite a bit. That might be what we are getting ready to do in this market.
Brent Technical Analysis
The Brent markets have tested the 200-day EMA and I think we have got a situation where the Brent market is starting to look a little bit tired in this area. And that makes sense, the 200-day EMA, of course, attracts a lot of attention from technical traders over the longer term.
I suspect at this point we are trying to bounce around between the 200-day EMA and the 50-day EMA as well, with the $65 level basically being a bit of a magnet for price. If we do take off to the upside, then we could go looking to the $68 level, possibly the $70 level.
If we were to turn around and fall below the 50-day EMA at the $63.20 level, then we probably drop towards $62. I think there is serious concern about demand right now and that will continue to make this a choppy affair.
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