Crude Oil Price Analysis – Oil Continues to Affirm Range

WTI Crude Oil Technical Analysis

The light sweet crude oil market has dipped early during the trading session here on Friday, but it does seem like there is quite a bit of support underneath the $85 level, so I think we have a situation where traders are going to continue to see the overall range play out that has been pretty much intact since March.

A little bit of a bounce here probably makes some sense heading into the weekend, as we don’t know what headlines will come out of the Middle East, but that will probably be influencing this market. A bounce to the 50-day EMA makes a certain amount of sense. That being said, if we get a quiet weekend, probably be a quiet opening on Monday.

Brent Crude Oil Technical Analysis

The Brent market is a little bit the same; it’s also showing the same type of candlestick as the $85 level is offering support, with the 200-day EMA backing it up. We could get a bounce towards the $95 level, but if we break down below the 200-day EMA, that could unwind this market pretty drastically.

We’ll just have to wait and see how this plays out, but it is worth noting that anything can happen over the weekend, so I think what you have more likely than not, at least on Friday, is maybe some short covering.

I don’t know that it’s bullish, but with the right headline over the weekend, we could see this thing open up $4 or $5 a barrel higher, and if you are short of this market, that’s something you have to be aware of.