WTI Crude Oil Technical Analysis
The $65 level above is a major resistance barrier, so I think we are just going back and forth to try to figure out where we are trying to go over the longer term. At this point, things are not clear at all.
If we can break above the $65 level, then it opens up the possibility of a move to the $70 level. If we break down below the $62 level, then the $59 level could be your target. Keep in mind that we have a situation where crude oil demand is in question, but there are concerns about the potential actions of the United States against Iran. While this fear has abated somewhat, there are still some concerns out there.
Brent Crude Oil Technical Analysis
Brent markets find themselves to be in a very similar situation with $70 offering resistance, the 200-day EMA under offering support, and then the $65 level offering support. These areas, so far, have been very reliable.
Again, this is the question of whether or not there is going to be enough demand. I think you have a scenario where you can make the argument that maybe demand is being priced in already for the summer season and we will try to find a range from which to trade. Currently, this is a market that is doing everything it can to sort out which direction to go, but I anticipate that there is probably more of a buy-on-the-dip bias in both grades of oil that I follow.
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