Crude Oil Price Analysis – Crude Oil Jumps as War Expands

Light Sweet Crude Oil Technical Analysis

The light sweet crude oil market has rallied a bit during the early hours here on Tuesday as we continue to see a lot of concern about the most obvious thing in the room, the Americans and the Israelis bombing the Iranians and whether or not it will shut down massive amounts of production.

That being said, we are getting fairly close to an area that previously had been resistant, although it is a zone. I will center it on $78.50. If we can break above there, then oil goes much higher. Truthfully, though, I think you have a real problem here in the sense that you will have trouble keeping up the momentum.

Brent Technical Analysis

Brent markets look very much the same again during the trading session here on Thursday and now it is threatening $85. Brent will feel this more than light sweet crude, so if we do get a significant longer-term breakout, this will be where you see it first.

We are attempting that right now, so it will be interesting to see how this plays out. I think ultimately, though, you have to be cautious chasing Brent crude oil, basically up $15 in 2 trading sessions. In this environment, while I certainly wouldn’t short it, at least not yet, I would be careful chasing a move that is already up 7.36% as I record this video.

I do believe that this is going to be a fade the rally type of move if you are patient enough. Chasing this move, you have to be very careful. For example, you have to understand that back in June, we had a very similar situation, although this time it seems a little bit more significant. And once oil was found to be okay, the market completely fell apart, so I am concerned about that.

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