Crude Oil Price Analysis – Oil Bounces After Gapping Lower

WTI Crude Oil Technical Analysis

The light sweet crude oil market gapped lower to kick off the trading session here on Tuesday, but then rallied to stabilize a bit. This makes a certain amount of sense considering that we are still moving on the latest headlines coming out of the Middle East and not really with any discernible stability, other than we go up, then we go down, and vice versa. So, there is a little bit for everybody in this chart right now, but the one thing that I do think is becoming more obvious is that the lows are going to be higher than they once were.

The $100 level is an area that I think a lot of people will be watching very closely, as it is a large, round, psychologically significant figure and an area that we have seen reactions in both directions from. If we do pull back from here, I will be looking to buy oil again, but I think buying and holding might be a little bit difficult.

Brent Crude Technical Outlook

Brent markets also gapped lower, but they are stabilizing. I still think this is a market that I would rather see drop a bit further to get involved, maybe at least to the $105 level, maybe even $100 level, where the 50-day EMA is.

While we have had a nice recovery during the day here on Tuesday, the reality is we don’t have enough runway to the ceiling at this point that I don’t like buying it up here. I want to find value, and I do think that we will continue to get this pseudo-undulation as we are going forward. A range is trying to appear, but we aren’t quite settled enough to have it as being obvious quite yet.