Crude Oil Price Analysis – Oil Gaps Higher to Start Week

WTI Crude Oil Technical Analysis

The light sweet crude oil market jumped right off the bat on Monday, but has turned around to show signs of hesitation since then. By doing so, this suggests that it’s all news-driven. After all, there was a lot of hostile exchange via the media between the United States and Iran. But we’ve also gotten the announcement that the Iranians are willing to accept nuclear inspectors into their country again, so that is progress.

All things being equal, look like the 200-day EMA offered resistance. I think we continue to see more or less a market that you’re fading rallies, at least for the short term, but I do think there’s a floor somewhere around the $70 level. This is an area that should be very strong support based on the technical analysis.

Brent Crude Oil Technical Analysis

The Brent market did the same thing. It gapped higher, and then it fell almost immediately. Brent also has a floor in it, probably just above the $70 level, as there’s a gap that has yet to be filled from the beginning of March. That would be a complete round trip from the war, so that would be interesting to see.

We tried to rally right off the bat, but it looks like the 200-day EMA region is going to continue to offer technical resistance right around the $85 level. I think ultimately we will try to find some type of trading range for the summer, like we normally would, but we still have these occasional headlines that throw the market around. It certainly looks like market participants, though, are pricing in peace.