Crude Oil Price Analysis – Crude Oil Testing a Move Higher

WTI Crude Oil Technical Analysis

The crude oil market, the light sweet crude oil market, has shown itself to be very noisy, but I think ultimately this is a market that is simply waiting to find out whether or not the Americans will attack the Iranians, thereby potentially sending crude oil much higher. That being said, it is worth noting that the $66.50 level continues to be an area of pretty significant resistance.

With that being the case, it’s not a huge surprise to see that we are simply hanging about. Any pullback at this point, I believe, ends up buying some time for traders to find a little bit of value. And that’s how I’m going to play this. I’m not looking for a huge move, although a spike could occur after a military strike. I just think in general; we’re drifting higher.

Brent Technical Analysis

Brent looks very much the same. It is above the crucial $70 level. So, with that being said, I think you have to look at this as a market that is supported there. I also believe that the 50-day crossing above the 200-day EMA opens up algorithmic trading, longer-term investors, that type of thing, getting into the market.

With all of this being said, I think you have to look at this as a buy on the dip market as well. I really don’t have any interest in shorting oil at the moment.