Crude Oil Price Analysis – Oil Has Overhead Pressure as Traders Watch Middle East

WTI Crude Oil Technical Analysis

The light sweet crude oil market has rallied slightly during the trading session on Thursday, but it looks like we still have a little bit of overhang here and we are selling off again. All things being equal, I look at the 50-day EMA at the $94.20 region as a little bit of a barrier. If we could break above there, then you could go looking to the $100 level. A breakdown from here could open up a move down to the $85 level, possibly even the $82 level.

Ultimately, this is a market that I think will remain noisy because, quite frankly, it’s all based on the latest headlines coming out of the Middle East. It does look like at least the shooting has stopped, but really we don’t have any opportunity to have clarity, and I think you continue to see a lot of back and forth.

Brent Crude Oil Technical Analysis

Brent markets, of course, continue to look very weak. We are trying to recover, but the $95 level seems to be a bit of a barrier. If we can break above there, the market could go looking to the $100 level where the 50-day EMA currently resides. A fall from here could open up a move down to the $90 level, possibly even down to the $85 level.

The $85 level should be a massive floor, so if we were to break down below there, I’d be very surprised. Ultimately, I think this is a market that continues to see a lot of volatility based on headlines and the expectations out of the Middle East, which right now, I don’t know if traders know what to expect.