Crude Oil Price Analysis – Crude Oil Continues to See Buyers on Dips

WTI Crude Oil Technical Analysis

The light sweet crude oil market initially fell during the trading session on Wednesday, testing the 50-day EMA before turning around and showing signs of life. By doing so, it also tests the 61.8% Fibonacci retracement level from that massive impulsive move to the upside.

The market continues to be one that is moving on to the latest headlines coming out of the Middle East, so there is only so much technical analysis you can do. The $100 level above I think is a bit of a barrier, could be a target. I think that the $85 level below is a bit of support.

Right now, it looks like we are trying to form a hammer for the day. Obviously, we have quite a bit of time left, but this tells me the market is probably more apt to try to stay somewhat range-bound.

Brent Crude Oil Technical Analysis

The Brent market has fallen as well, testing the 50-day EMA also, and then just like the light sweet crude oil market, has turned around to bounce, completely wiping out those losses. The $100 level above is resistance right along with the $104 level.

If we were to break down below $90 in the Brent grade, that could send this market much lower. But as things stand right now, it looks like it is just trying to figure out where it is comfortable, and in that environment, you would expect a lot of choppy sideways trading in general as we try to sort out where to go next in this market, which will almost certainly be somewhat noisy.