Crude Oil Price Analysis – Oil Gaps Lower Ahead of Holiday 3-Day Weekend

WTI Crude Oil Technical Analysis

The light sweet crude oil market has gapped lower to kick off the trading session here on Thursday, but keep in mind Thursday is an end-of-the-week session, really, because the Americans, of course, will be away for the holiday. I think you have a situation where a lot of traders are looking at this through the prism of trying to get out of the market ahead of a 3-day weekend.

We have filled the gap, so that does suggest that this should be a bit of support here. Of course, I think it also suggests that we could be getting fairly close to some type of bounce. Any bounce at this point in time, I think, is just a market that is trying to find some type of range. This time of year is typically range-bound, so we will see if that actually happens.

Brent Technical Analysis

Brent has dropped enough to test the $70 level before turning around. The $70 level of the course is a large, round, psychologically significant figure and an area that a lot of people will be watching. The $70 level being broken to the downside could open up a move down to $65, but I think it ends up being a market that more likely than not will bounce, and I think try to find its range as well.

Ultimately, this is a market that is trying to find its bottom. It has not yet, and I do not necessarily think that traders will be looking to jump in and start buying ahead of a 3-day weekend, but early next week I expect to see a little bit of turnaround. I do not think anything big comes of it, just stabilization.

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