Crude Oil Price Analysis – Crude Oil Drops with Lack of Headlines

WTI Crude Oil Technical Analysis

The light sweet crude oil market initially tried to rally a bit during the trading session on Friday but struggled with the 50-day EMA. The 50-day EMA is a situation in the technical analysis world that people will watch very closely as it can flip the overall momentum of markets. If we can break above the 50-day EMA, then we could go looking to the $100 level.

This market will continue to simply wait for some kind of clarity from the Middle East to make bigger decisions. However, it should be noted that many parts of the world are going to have supply disruptions in the summer.

Brent Crude Oil Technical Analysis

The Brent market also has given up early gains, but I also recognize that traders are looking at this through the prism of quite a bit of noise coming out of the Middle East. It does look like things are calming down a bit, although we’re millions of miles away from an actual agreement between the Americans and the Iranians, so we’re probably only 1 headline away from this thing turning around.

The 50-day EMA sits just below the $100 level, and I do think we’ll try to get there eventually, but as we head into the weekend, I think we’ll just kind of hanging out in the area we are, so ultimately, this is a market that looks at the $90 level as support. I would be surprised to see the market break down below this level, as it is so important. At this point, I look to short-term bounces as buying opportunities.