Crude Oil Price Analysis – Oil Continues to See Volatile Moves

Crude Oil Technical Analysis

The Light Sweet Crude Oil market has gapped to the upside to kick off the week, but it has since fallen. I think at this point in time, we are going to continue to dance around this $100 level as resistance and, of course, noise. With that being the case, a little bit of a pullback would be the ideal thing to get so that you can start buying again.

On the other hand, if we were to rally and break above the $104 level, this market could go looking to the $120 level. If we do drop, we could drop all the way down to $92 without much changing. Ultimately, I think at this point, oil is a market that you simply cannot short.

Crude Oil Market Resistance and Volatility

The Brent market will continue to be noisy as well, and it looks like it could pull back toward the $100 level. The $100 level of the course is a large, round, psychologically significant figure that everybody will be watching as per usual. This is an area that will continue to cause a bit of choppiness more than anything else.

Dropping below there opens up the possibility of a fall towards the $92 level. All things being equal, I think this is the same situation. This is a market that you just don’t sell; you look for buying opportunities based on value, especially with all of the potential headlines out there that could cause quite a bit of noise and volatility. I think that is the world we’re living in until the war stops in Iran.