Crude Oil Price Analysis – Crude Oil Stagnant at Important Levels

WTI Crude Oil Technical Analysis

The light sweet crude oil market has gone back and forth during the trading session on Monday, as Martin Luther King Jr. Day will obviously have a major influence on the futures markets as far as being open. So, the fact that we have gone back and forth and really not found any traction is not a huge surprise.

We are sitting at the 50-day EMA and right above the previous downtrend line that had been so prevalent for so long. So, this will be the question at this point in time: whether or not we can stay above this trend line. If we can, then we have a chance to form a new consolidation range that is probably going to struggle with the 200-day EMA near the $62.50 level on the top side, and this 50-day EMA could be your bottom, at least for the short term.

If we continue to break down from here, then we probably go looking towards the $56 level as we re-enter the previous area.

Brent Technical Analysis

The Brent markets look pretty much the same. They are sitting just above that 50-day EMA. They have the 200-day EMA offering resistance with the $65 level in the middle being a bit of a pivot point, if you will.

If we break down below that 50-day EMA, we almost certainly will test the previous trend line, and we’ll see whether or not that can actually hold. Keep in mind, though, again, it was Martin Luther King Jr. Day in the United States and that shut down the futures markets for several hours during the session, so volume, of course, will be an issue.

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