Crude Oil Price Analysis – Crude Oil Continues to See Support

WTI Crude Oil Technical Analysis

The light sweet crude oil market has bounced a bit as the 50-day EMA continues to offer support, but we do continue to see a little bit of resistance at the $60 level. Any rally at this point in time almost certainly will continue to push this market towards the $62 level, which is a large, round, psychologically significant figure.

The 200-day EMA continues to be a major barrier, so I think that’s probably the ceiling in the market at the moment.

Brent Technical Analysis

I can say the exact same thing about the Brent market as the 50-day EMA seems to be offering support with the $65 level being a little bit of a magnet for price, and the 200-day EMA being a bit of a resistance barrier. Again, I think we are compressing a bit because, quite frankly, I don’t think traders really know what to do in this environment.

There are concerns about trade, but at the same time, there seems to be a hard floor in both grades of crude oil. Who knows, maybe OPEC is going into the futures market and supporting it. They’ve been known to do that in the past, so we’ll just have to wait and see, but I think you continue to look at short-term back-and-forth trading opportunities in this market in general.

Demand for crude oil is a mixed picture right now. There are a lot of concerns about tariffs and trade slowing down, but at the same time, we have just bounced from a major floor. So we’ll have to wait and see whether or not we will get any traction here. But as things stand right now, I think we are in the midst of starting a new consolidation area.

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