Crude Oil Price Analysis – Crude Oil Gives Back Early Gains

WTI Crude Oil

The light sweet crude oil market has rallied a bit during the early part of the trading session on Monday, but gave back gains rather quickly, as it looks like we are going to continue to see a lot of hesitation to put too much money in 1 direction or the other.

After all, the concerns about crude oil are coming out of the Middle East, and we don’t really know what to read into that quite yet. So therefore, I think you can anticipate a lot of choppy behavior. We are hanging around the $100 level. That’s worth paying close attention to.

And with that, I think you have to look at any breakdown as a potential buying opportunity, especially the closer we get to the 50-day EMA. This indicator will often cause a lot of attention to be paid by traders.

Evaluating Brent Markets and the $100 Floor

Brent markets also tried to rally, but they’ve given back gains above the $110 level, and it looks like they could possibly pull back from here, looking to find value at a lower price. The $100 level has been an excellent floor recently, and I think that remains the case, especially now that the 50-day EMA is sitting there.

All things being equal, I do like the idea of buying dips to take advantage of cheap oil, but we’ll just have to wait and see. I think we got a little bit ahead of ourselves, and now people are not in panic mode for a few minutes. What will happen is we’ll pull back, something will be said, and then we’ll pop higher again.