Crude Oil Price Analysis – Oil Continues to See Range Play Out

WTI Crude Oil Technical Analysis

The light sweet crude oil market has fallen a bit to show signs of negativity early on Tuesday, as we are perhaps starting to price in the idea that maybe things in the Middle East could wind down a bit. After all, the latest spat between the Iranians and Israelis, the Americans couldn’t be bothered to join, so that’s a good sign. That’s a sign that maybe we are getting closer to the end than most people thought.

That being said, I think this is a market that still has a lot of support near the $90 and then at the $85 level, which it looks like we’ll be testing $85. A bounce from there might be a nice short-term buying opportunity. I think that’s about all it would be, though.

Brent Crude Oil Technical Analysis

The Brent market looks as if it is threatening $90. If we were to break down below the $90 level, we could open up the possibility of moving down to the $85 level. The 200-day EMA sitting in that area offers support. If we bounce from here, we could go looking to the 50-day EMA, but I wouldn’t look for much more.

Oil markets need to continue to be traded with smaller positions because of the inherent volatility at the moment. I think you have a situation where the headlines, of course, are still the major issue, but you also need to keep in mind that the overall situation does seem to be at least somewhat calming down, and that will be negative for prices eventually.