Crude Oil Price Analysis – Crude Oil Trying to Bounce on Wednesday

WTI Crude Oil Technical Analysis

The crude oil market initially fell during the early part of the trading session here on Wednesday, but has turned around to show signs of life. By doing so, it looks as if the market is perhaps getting ready to bounce from that oversold move that we’ve seen recently due to the idea that peace between the Americans and the Iranians may actually happen.

That being said, as long as we get that peace, I think we probably have a lot of pressure above somewhere around the $85 level to offer a ceiling. A short-term rally is possible, and those of you who are nimble might take advantage of it. Otherwise, we will drop to $70.

Brent Technical Analysis

Brent market is very much in the same boat right now. The $70 level would be your floor here, but it looks like it wants to rally toward the 200-day EMA on Wednesday. This is a market that will continue to be volatile to say the least.

The $85 level is a pretty significant barrier. I think it’s going to struggle to get above there with any type of meaning, but of course, if we get bad news coming out of the Middle East, that could change pretty quickly.

I expect to see a lot of choppiness and a lot of noisy behavior, but ultimately, a short-term bounce does make sense after we’ve pretty much collapsed over the last couple of weeks. I think this could just be short covering; you never know at this point.