Crude Oil Price Analysis – Crude Oil Quiet in Holiday Session

WTI Crude Oil Technical Analysis

The light sweet crude oil market continues to try to find some type of bottom, although it’s worth noting that Friday was Juneteenth in the United States, which, of course, is a holiday, and that means less volume and less trading hours. Nonetheless, we did sell off pretty drastically over the last couple of weeks, giving the so-called peace dividend a chance. $70 underneath, I think, continues to be a floor.

The 200-day EMA above continues to be a resistance barrier, but I think we’ve got a situation where you are buying short-term dips to try to pick up value because, quite frankly, even if the Strait of Hormuz opens, we still have a massive shortage of crude oil, and we still have those supply chain disruptions that will be felt for a while. I do think a short-term bounce is likely. It’s not a buy-and-hold market. I think you also sell at the first signs of exhaustion after that rally.

Brent Crude Oil Technical Analysis

The Brent market is very much the same; it’s got the 200-day EMA right around the $85 level. If we fall from here, there is a gap down to the $72 level that could be a potential floor. Ultimately, I do think this market probably sees the $85 region as a bit of a barrier, but it would not surprise me at all to see this market bounce just a touch.

This is a short-term trade. This is not something that we are looking at for a quick smash-and-grab type of opportunity in this market. Because of this, I am looking for short-term charts to send the proper signals.