Crude Oil Price Analysis – Oil Continues to Jump on Headlines

WTI Crude Oil Technical Analysis

The crude oil market has shown itself to be very bullish in the early part of the session on Monday as traders continue to look at the situation in the Middle East and recognize that there are going to be issues. That being said, we have given back some of the gains near the $100 level and I think that is something worth paying close attention to.

If we can break above the $100 level, then maybe we can get to the $110 level. But if we pull back, the 50-day EMA near the $92 level could test significant support. With that being said, this is a market that I think continues to be one that is moving on the latest behaviors of leaders in the Middle East and the United States.

There are a lot of concerns about the free flow of oil, and quite frankly, I think we have a longer-term disruption, and some of the reports are starting to show that. But that being said, it doesn’t mean that we continue to skyrocket. I think we just have a higher floor.

The 50-day EMA is an area where I expect to see buyers come back into the market on any pullback.

Brent Crude Oil Technical Analysis

Brent markets look very much the same, as we have broken above the $105 level, and now it looks like we will continue to see resistance above there.

So, a pullback toward the $100 level for me makes a certain amount of sense, and I am bullish on this market as we continue to see more back-and-forth behavior. But I don’t necessarily think that you need to get super aggressive. I just think you have a situation where traders are watching that $100 level with a lot of interest and I believe it is starting to look a lot like a short-term floor.