Crude Oil Price Analysis – Crude Oil Stalls at 50-Day EMA as Middle East Noise Persists

WTI Crude Oil Technical Analysis

The light sweet crude oil market has gone back and forth during the trading session on Monday, as we are hovering around the 50-day EMA. This is a market that remains very noisy, and therefore, I think we have to pay close attention to the latest headlines.

After all, we get a lot of noise coming out of the Middle East, and the next thing you know, things quiet down, oil typically will fall at that point, and then somebody launches a missile, and then we are back to the chaos. That is the unfortunate part of trading crude oil at the moment; it has to do with whether or not there is going to be enough supply or if somebody is attacking somebody else, that kind of thing. And in this environment, it is very difficult to predict that. That being said, it is worth noting that it had sold off quite drastically previously, and now we seem to be stalling at the 50-day EMA.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same; it kind of went back and forth. We are sitting just above the 50-day EMA, but we are pulling back from the area we really fell apart from, that June 11 candlestick. So, we will see whether or not that continues to be the case.

Ultimately, this is a market that also has the 200-day EMA just below the $85 level, which will be worth watching. Breaking down below there could bring in more bearish pressure, but again, this isn’t so much a technical market right now; this is a market that is reacting to the latest random tweet or missile attack or something to that effect, things that we cannot predict. It is a very dangerous market, to say the least.

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