Crude Oil Price Analysis – Crude Oil Winding Up for a Bigger Move?

Light Crude Oil Technical Analysis

Crude oil in the light sweet crude grade continues to be very noisy. We initially gapped lower during the trading session on Thursday, fell, and now have bounced a bit to at least try to fight back.

It looks more likely than not to stay in this consolidation area with the 200-day EMA offering support just above the $62 level, which has already proved itself to be supported, and the $66 level above which is resistance and has been multiple times in the past. All things being equal, I think we are in a small consolidation range where we are trying to determine and coil up for the next big move.

Brent Technical Analysis

Brent market looks very much the same as it gapped lower to kick off the session, fell from there, and then turned around to show signs of life. With this, the $70 level continues to be a bit of a barrier that people are trying to break above. If and when it happens, we could go looking to the $72 level. That being said, in the meantime, I think the 200-day EMA currently sitting at the $66.32 level is offering a bit of support.

Look at choppiness and consolidation continuing to take control of the market as a sign that maybe short-term trading opportunities present themselves more than anything else. We have a somewhat concerning lack of demand but a huge amount of supply, which would typically be bearish, but we also have plenty of geopolitics and threats against the Iranians that will continue to cause a little bit of a bid at the same time.

If you’d like to know more about what drives oil prices, please visit our educational area.