Crude Oil Price Analysis – Oil Rallies Early on Monday

WTI Crude Oil Technical Analysis

The light sweet crude oil market has shown itself to be very strong early in the trading session on Monday, but it also shows a certain amount of hesitation to continue to go higher. I think you have a scenario where traders are looking at short-term pullbacks as buying opportunities, with the $100 level being a bit of a floor. If we were to break down below there, then the market could go down to the 50-day EMA, an area that should be important.

Ultimately, I think short-term pullbacks open up the possibility of buying cheaper oil as long as there are concerns about the supply. Keep in mind that even if things do calm down in the Middle East, there is still a backlog in supply chain issues that will slow down delivery. This is a longer-term concern for people out there.

Brent Crude Oil Technical Analysis

Brent looks very much the same. It did rally early, but then it looks like it is going to try to find support near the $105 level and then the $100 level. The $100 level is an area that I think is your short-term floor. This is an area that will also attract a lot of interest, as it is a large, round, psychologically significant number.

All things being equal, I like the idea of finding value if and when I can with the $115 level, the beginning of massive resistance that extends to the $120 level. All things being equal, this is a short-term buy on the dip type of scenario. This is a market that I continue to see value on drops, but at the same time, there are concerns that headlines could rattle the markets at any time.