Crude Oil Price Analysis – Oil Continues to See Noisy Trading on Friday

WTI Crude Oil Technical Analysis

The light sweet crude oil market has gapped lower to kick off the trading session on Friday, only to turn around and show signs of life. It looks like the $100 level continues to be a bit of a magnet for price and it is also worth noting that the situation in the Middle East just is not getting better. It is not necessarily getting a whole lot worse; it is just not getting better.

With that being the case, I think there is a lot of confusion here and I do think that short-term pullbacks offer buying opportunities in this market. The 50-day EMA is sitting right around the $93.44 level and continues to be a bit of a floor as well. To the upside, the $110 level is probably your ceiling.

Brent Crude Oil Technical Analysis

The Brent market gapped higher to kick off the trading session and took off to the $110 level. It looks like we are going to continue to struggle in general, though, so I think short-term pullbacks continue to be buying opportunities, and I think the $100 level is a floor in this market as the 50-day EMA is sitting right there as well.

All things being equal, I think the market does try to find its way back to the $115 level, but you also have to keep in mind that a lot of this comes down to the latest headlines coming out of the Persian Gulf area and what it could do to oil supply. So, with that, I like buying dips. I do not necessarily want to chase this market, and you need to keep the position size reasonable.