Crude Oil Price Analysis – Oil Continues to See Headlines Cause Havoc

WIT Crude Oil Technical Analysis

The light sweet crude oil market has gapped lower to kick off the trading session here on Tuesday, but you can see that we did in fact turn right back around as traders are pricing in the fact that there was a raid in a port by the Americans and the Iranians of course are furious. So, with this being the case, I think we just stay in the same range overall, perhaps bouncing all the way to the $110 level over time, assuming that we get more bad news, and one would have to be honest here, we probably will.

Brent Crude Oil Technical Analysis

The Brent market is currently bouncing a bit, and I think if we can break back above the $100 level, that would be a very strong sign of strength again, and then you would be talking about a potential bounce towards the $112 level, which is an area that had been resistance previously. This is the target, but getting there will probably be very noisy to say the least.

At this point, I don’t have any interest in shorting oil regardless, and we did get a deep enough correction that I think you could start to think about buying. Nonetheless, I do recognize that this is a market that will remain volatile, it will continue to move on the latest headline coming out of the Middle East or Washington or whatever, so you have to be very cautious. Small position sizes are essential at the moment, as we continue to see a lot of headline risk and uncertainty in this asset.