Crude Oil Price Analysis – Oil Stalls Near 50-Day EMA Amid Middle East Headlines

WTI Crude Oil Technical Analysis

The Light Sweet Crude Oil market has rallied initially on Tuesday but has also given back most of the gains by the time we roll into the US markets. All things being equal, this is a market that is hugging the 50-day EMA and moving on the latest headlines coming out of the Middle East more than anything else.

At this point, it’s a very difficult market to navigate because, quite frankly, we don’t know what the next statement’s going to be, whether it’s going to be antagonistic from the US and Iran or if they will calm things down again. It’s a simple matter of trading fear at this point.

The fact that we have given back some of the gains early on Tuesday is not a huge surprise, as we had shot straight up in the air.

Brent Crude Oil Technical Analysis

The Brent market is very much the same action. We’re above the 50-day EMA, but we are struggling to hang on to gains early on Tuesday. That doesn’t mean that the market is going to fall apart; it just means that eventually gravity becomes a factor here.

Markets don’t go in one direction forever, and of course, it’s got to be a very exhausted market due to all of the nonsense that we’ve been dealing with over the last several months.

As things stand right now, we are essentially sitting on top of the 50-day EMA, just looking for the next catalyst, which, unfortunately, is probably going to come in the form of a social media post or a press release. And until we get it, we just don’t know what that is.

The market continues to get thrown around by the latest hint that perhaps oil could flow through the Strait of Hormuz, only to be disappointed time and time again.

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