Crude Oil Price Analysis – Crude Oil Continues to Move on Headlines

WTI Crude Oil Technical Analysis

The Light Sweet Crude Oil market is looking positive early here on Monday, breaking above the 200-day EMA. But I pointed out on Friday that some traders could look at this as a rising wedge, so that technically would be a bullish sign. But we also have to keep in mind that the headlines have been major problems for the market from time to time in both directions. We’ll just have to wait and see how things play out.

Ultimately, there are a lot of unknown scenarios out there between the Americans and the Iranians. And as long as the Strait of Hormuz is closed, and it essentially is, we have a major problem with the flow of oil around the world. That keeps things somewhat lively, but at the same time, traders seem awfully quick to try to price in some type of resolution to the war. This back and forth is what’s been throwing the market around as of late. So, unfortunately, it’s a news-driven market, and the news cycle is random.

Brent Crude Oil Technical Analysis

The Brent market has broken above the 200-day EMA, reaching towards the $85 level. The $85 level is a large, round, psychologically significant figure, and as we are between the 50-day EMA and the 200-day EMA indicator, sometimes that will cause a little bit of a squeeze.

Ultimately, this is a market that looks like it’s trying to turn things around. The 50-day EMA will, more likely than not, be watched by technical indicator followers. But again, unfortunately, a lot of this just comes down to the latest headline coming out of the Persian Gulf.

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