Crude Oil Price Analysis – Oil Continues to Struggle on Friday

WTI Crude Oil Technical Analysis

The WTI crude oil market has drifted a bit lower during the trading session on Friday as we are currently testing the $70 level. The $70 level of the course is a large, round, psychologically significant figure and an area that previously had been an important support. If we break down below the $69.70 level, which is right where we are trading, then it is likely that WTI goes looking to test the $67.50 level underneath.

Any bounce at this point in time will more than likely run into resistance near the $75 level, and then of course the 200-day EMA, which is closer to the $79 level. I look at rallies as selling opportunities in a market that obviously has a lot of negative momentum behind it.

Brent Technical Analysis

Brent crude has also broken down, reaching towards the $72.70 level during the session. The $75 level above should now offer resistance, and as long as we stay below there, it is very likely that Brent will continue to look for lower levels, perhaps down to the $70 level eventually. The 200-day EMA sits way up at the $83.61 level, so we are nowhere near changing the broader trend.

Geopolitical risks have cooled down a bit as more tankers leave the Strait of Hormuz, and that has drained a lot of the risk premium out of the market. Demand is also a major issue as global economic growth slows down. Because of this, I have no interest in buying crude oil, and I look at every rally as a potential shorting opportunity at the first signs of exhaustion.

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