Crude Oil Price Analysis – Crude Oil Tests 50-Day EMA as Middle East Risks Rise

Crude Oil Technical Analysis

The Light Sweet Crude Oil market is testing the 50-day EMA, an area that I think a lot of people will watch due to the fact that it has been a resistance level for a couple of days in a row. If the market were to break above there, then it opens up the possibility of an even bigger move to the upside, but I also recognize that we have a scenario here where the 200-day EMA underneath could offer a bit of support. Ultimately, this is a market, more than anything else, I think, is going to show its next move based on the next headline coming out of the Middle East.

The tension, of course, picks up, and if it gets worse, and it could over the weekend, oil could race. On the other hand, if things cool down, that would be negative for oil pricing.

Brent Technical Analysis

The Brent market looks very much the same. It’s hanging around the 50-day EMA. It looks very much like a market that doesn’t know what to do, but with that being said, I believe this is a market that, given enough time, will have to make a bigger decision. If we were to break down below the 200-day EMA, if we break down below the 200-day EMA, then we could see a drop, but again, I think most of this is going to be based on the idea of whatever it is that is coming out of the headlines from the Middle East.

Again, I think this is a market that technically looks bullish, and it certainly looks like there is no end to the fighting, but again, we’ve seen twists and turns along the way.

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