Crude Oil Price Analysis – Oil Continues to See Noise via Headlines

WTI Crude Oil Technical Analysis

The light sweet crude oil market initially rallied during the early hours on Thursday but gave back gains as we are hanging around the $100 level. The $100 level of course will be an area that a lot of people will be watching, but if we are to break down from here, the 50-day EMA is likely to continue to be massive support.

Unfortunately, in this market, we’re going to have to worry about the latest headlines crossing the wires coming out of the Middle East, which I think is the story here. That being said, I do like the idea of buying dips as this market continues to be one that does have a significant amount of support underneath it and even when we do calm down, the selling pressure isn’t that great most of the time.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same and I think you have massive support near the $100 level, which is also backed up by the 50-day EMA. The 50-day EMA offers a bit of a short-term floor, and I think it’s probably only a matter of time before market participants will get involved and try to take advantage of cheap oil.

Let’s be honest here, the situation in the Middle East, although not as destructive as it once was, doesn’t seem to be making any real progress and as a result, I think you have to assume this is a market that just kind of bounces around in a larger range, just as we have seen over the last several weeks. I’m looking for a bounce near the 50-day EMA.