Crude Oil Price Analysis – Crude Oil Stays in Range Heading into the Weekend

WTI Technical Analysis

Crude oil continues to test the same range. The light sweet crude oil market finds itself hanging around the 200-day EMA right along with the $62 level. The $62 level of course has been supported more than once and of course has been resistance previously.

The market is hanging around the 200-day EMA as well, so I think between that and $62, I think you have a situation where there could be plenty of buyers here. If we were to break down then we more likely than not will go looking to the $60 level. Any rally at this point in time will have to deal with $66 above as a potential major barrier.

Brent Technical Analysis

The Brent market is drifting a little lower as we sit above the 200-day EMA. And as we are right in the middle of an overall range, it does make sense that we would just hang out and try to figure out where we are going next.

The $65 level below is support, with the 50-day EMA hanging around and the $70 level above is significant resistance and I think would be difficult to break out of. Ultimately, I think this is a market that will go back and forth as we are looking at the markets through a prism of trying to find balance, but at the same time having the Americans and the Iranians trying to hash out some type of deal.

The fact that they are talking to each other probably puts a little bit of a lid on this market. As we are right in the middle of the larger range, it is pretty neutral here in the Brent market.

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