WTI Crude Oil Technical Analysis
The light sweet crude oil market continues to show signs of life as we are reacting to Trump saying that he wasn’t going to accept the Iranian proposal, and we’re just back to where we were a couple of days ago. Quite frankly, I think that Friday was probably more or less people getting out of the weekend with a bunch of crude oil contracts in their hands, as we had bounced.
Now, it looks like we have the potential for short-term buyers to defend the 50-day EMA and perhaps try to go to the $105 level. The $85 level underneath is a pretty significant support level.
Brent Technical Analysis
The Brent market also looks very bullish early on Monday as we continue to see traders recover from the profit-taking on Friday. Now we are in a scenario where we are looking at the $100 level as significant support, a potential market memory level, as it had previously been resistance.
Ultimately, if we can break out to the upside, the market is likely to go looking to the $115 level. I do not want to short this market. I think anytime it drops, we have to wonder whether or not this is going to be a value play, if it gives us an opportunity to pick up a little bit of value and cheap barrels of oil.
Quite frankly, it’s only a matter of time before a bad headline hits these days. So anytime it drops, I think it is specifically more or less offering an opportunity. It doesn’t necessarily mean that we have to explode to the upside, but there’s definitely a little bit of lift here.
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