Crude Oil Price Analysis – Crude Oil Drifts a Little Lower on Tuesday

WTI Crude Oil Technical Analysis

The light sweet crude oil market has pulled back just a touch during the trading session on Tuesday as the 50-day EMA just above offers a bit of resistance. If we can break above that 50-day EMA, currently at the $93.70 level, then we could go looking to the $100 level.

A pullback from here could see a drop all the way to the $85 level, an area that I believe is a major floor in the market. Ultimately, I am watching this market move with headlines, whether or not there’s peace or increased tensions in the Middle East.

Brent Crude Oil Technical Analysis

The Brent market, of course, is pulling back as well, and I think the $90 level is your short-term floor. The $100 level above is your target. I think eventually we’ll probably rise, but I also recognize that there’s a lot of headline risk out there where we may or may not get good news coming out of Iran or the United States around the region, which could open up the possibility of prices either rising or falling.

Ultimately, this is a market that is at the bottom of a range in general, and it looks like we are at least trying to build some type of bottoming pattern that we can go to the upside. If we do break down below $90, $85 would be my next target. That being said, I am still expecting this market to be in an overall range until we get more clarity about the situation in the Middle East between Iran and the US.